MUMBAI, 9 Sep (Commoditiescontrol): Malaysian crude palm oil (CPO) futures opened lower on Monday, continuing the downtrend from the previous session, as the market awaited crucial data from the Malaysian Palm Oil Board (MPOB) on output and inventories.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange dropped by 40 ringgit, or 1.03%, to 3,858 ringgit ($887.92) per metric ton during early trade.
The MPOB is set to release its much-anticipated monthly report on Tuesday, Sept. 10, with expectations of a significant rise in palm oil inventories to a six-month high by the end of August due to sluggish export demand, according to a Reuters survey.
Exports of Malaysian palm oil products in August fell by 9.9% to 1,445,442 tons from July's 1,604,578 tons, data from cargo surveyor Intertek Testing Services revealed. Amspec Agri also reported that Malaysia's August palm oil exports stood at 1,376,412 tons.
Indonesia, the world’s largest palm oil exporter, is planning to lower export duties in a bid to boost competitiveness and support farmer incomes.
In the broader commodity market, oil futures surged by over a dollar in early Monday trading, driven by concerns over an impending hurricane in the U.S. Gulf Coast and a recovery in markets following disappointing U.S. jobs data from Friday. Rising crude oil futures make palm oil a more attractive option for biodiesel feedstock.
Technically, palm oil could retest support at 3,886 ringgit per ton, with a potential further decline to 3,856 ringgit if support breaks, according to analysts.
(By Commoditiescontrol Bureau; +91 98201 30172)
0 Comments 
Post Comment 
