NEW DELHI, Sept 28 (Commoditiescontrol): Malaysian palm oil futures ended over 8 percent lower to a near 20-month low on Wednesday, extending downside for the fifth consecutive day, as global recession fears triggered concerns over demand.
The December benchmark crude palm oil contract on the Bursa Malaysia Derivatives Exchange (BMD) was down Ringgit 298 or 8.46 percent at Ringgit 3,225 ($696.85) a tonne by the close, after moving in the range of Ringgit 3,559 and Ringgit 3,220 per tonne. It lost 17 percent over five days.
As per analysts, global turmoil in energy and share markets added to selling pressure in edible oils side.
World shares sank to two-year lows, hammered by spiralling borrowing costs that intensified fears of a global recession and sent investors into the arms of the safe-haven dollar.
Crude oil prices fell more 1 percent, pressured by a strengthening dollar and crude storage builds that offset support from U.S. production cuts caused by Hurricane Ian.
Globally, Dalian's most-active soyoil contract fell 0.36 percent, while its palm oil contract dropped 2.76 percent. Soyoil prices on the Chicago Board of Trade (CBOT) declined 1.57 percent in electronic trade today.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market, while weaker crude oil makes palm oil less attractive as biofuel feedstock.
Exports of Malaysian palm oil products for Sept 1-25 rose between 18.6 percent and 20.9 percent from a month-ago figures, cargo surveyors said.
Meanwhile, the world's top palm oil producer Indonesia plans to set its crude palm oil reference price at $792.19 per tonne for Oct. 1-15, a government official said, which would place its export tax at $33 per tonne, down from currently $52 per tonne.
(By Commoditiescontrol Bureau)
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