Mumbai, 14 Nov (Commoditiescontrol): Malaysian crude palm oil (CPO) futures fell for the third consecutive session on Thursday, pressured by declining prices of competing vegetable oils in the Dalian and Chicago markets.
The January benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange dropped by 73 ringgit, or 1.46%, to 4,914 ringgit ($1,097.36) per metric ton.
In parallel, the most-active soyoil contract on China’s Dalian Commodity Exchange declined by 1.56%, and its palm oil contract slipped by 0.8%. Meanwhile, soyoil prices on the Chicago Board of Trade rose slightly, up 0.82%. Palm oil prices often mirror those of other edible oils due to competition for market share in the global vegetable oils industry.
India’s palm oil imports surged by 60% in October compared to September, totaling 845,682 tons, according to the Solvent Extractors’ Association of India. The increase reflects strong festive demand and refiners’ efforts to restock after recent lower-than-normal imports.
Indonesia is moving forward with a plan to introduce a 40% palm oil-based biodiesel blend (B40) starting January 2025. The initiative is part of the new administration’s “quick wins” program and aims to support the local palm oil industry.
In Malaysia, palm oil exports are projected to decline between 14.6% and 15.8% for the period from November 1 to 10, as estimated by surveyors AmSpec Agri Malaysia and Intertek Testing Services (ITS). Additionally, the Bursa Malaysia Derivatives Exchange (BMD) is preparing to launch a used cooking oil futures contract, anticipated as early as December, according to the Malaysian bourse’s director.
Weaker crude oil prices, driven by expectations of higher global production and tepid demand growth, also weighed on palm oil. Lower crude futures reduce the appeal of palm oil as a biodiesel feedstock. Technically, analysts suggest palm oil may test support at 4,795 ringgit per metric ton, with potential for further declines toward 4,655 ringgit if it breaks below this level.
(By Commoditiescontrol Bureau: 09820130172)
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