Palm posts biggest loss in six weeks on weaker rival oils, exports
Malaysian palm oil futures posted their biggest loss in over six weeks on Wednesday, in the first trading day after Lunar New Year holidays, tracking weakness in U.S. soyoil and as lower export volumes weighed.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange fell 3.57% to 3,753 ringgit ($881.19) per tonne by afternoon closing, its worst day since Dec. 12.
The Malaysian exchange was closed on Monday and Tuesday for the Lunar New Year holidays.
“Crude palm oil futures fell more than 3% as CBOT soybean oil declined sharply overnight on renewed selling pressure,” said a Kuala Lumpur-based trader, adding that weak exports in the first 25 days of the month also contributed to the weakness.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Meanwhile, the world’s biggest palm oil producer Indonesia saw its 2022 exports of the vegetable oil decline by 8.5%, industry group GAPKI said on Wednesday, amid sluggish production and higher domestic consumption.
Source: Reuters (Reporting by Fransiska Nangoy, Bernadette Christina Munthe; editing by Uttaresh.V)