MUMBAI, 14 Nov (Commoditiescontrol): Malaysian crude palm oil (CPO) futures fell for a third straight session on Thursday, weighed down by lower prices in rival Dalian vegetable oils and continued selling pressure in the CPO market.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange dropped 82 ringgit, or 1.64%, to 4,905 ringgit ($1,093.40) per metric ton by midday.
The ongoing sell-off is creating buying interest for local olein, keeping offers elevated, noted Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
In China, Dalian’s most-active soyoil contract fell 1.7%, and its palm oil contract declined 0.8%, while soyoil on the Chicago Board of Trade showed a modest gain of 0.49%. Palm oil often tracks these rival edible oils as they vie for a share of the global vegetable oils market.
India’s palm oil imports surged 60% in October to 845,682 tons, driven by festive demand and increased purchases by refiners replenishing stocks that had been reduced due to low recent imports, reported the Solvent Extractors’ Association of India.
Meanwhile, Indonesia’s government has reaffirmed its plan to implement a 40% mandatory biodiesel blend (B40) using palm oil-based fuel starting January 2025, as part of the administration’s “quick wins” initiatives. However, Malaysian palm oil exports from Nov. 1-10 have declined by 14.6% to 15.8% compared to the same period last month, according to data from AmSpec Agri Malaysia and Intertek Testing Services (ITS).
Global oil prices slipped on Thursday, reversing the prior session's gains amid concerns about increased production and sluggish demand growth, with a strong dollar adding pressure. Lower crude oil prices make palm oil a less attractive option as a biodiesel feedstock.
Technical analysts suggest palm oil may test support at 4,795 ringgit per metric ton, with a potential drop to 4,655 ringgit if this level is breached.
(By Commoditiescontrol Bureau; +91 98201 30172)
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