Palm oil fell in the fourth session, following the weakening of Dalian palm oil

Malaysian palm oil futures plunged for the fourth straight session on Tuesday, pressured by weakness in Dalian and Chicago vegetable oils as well as sluggish exports, while market players assessed the flood situation in Malaysia.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 65 ringgit, or 1.6%, to 3,990 ringgit ($966.10) per metric ton at the close.

“Today, Malaysian crude palm oil futures are trading in a tight range, tracking the performance of Dalian palm oil, while traders review the flood situation. So far, only northern Malaysia has been hit by heavy rain,” said a Kuala Lumpur-based trader.

More than 11,000 people in seven Malaysian states were affected by flooding caused by heavy rains, the national disaster agency said on Monday.

Malaysia’s exports of palm oil products on November 1-22 are seen falling between 16.4% and 18.8% compared with the same period last month, according to independent inspection firm AmSpec Agri and cargo surveyor Intertek Testing Services.

Dalian’s most active soybean oil contract (DBYcv1) fell 0.37%, while the palm oil contract fell 1.69%. Soybean oil prices on the Chicago Board of Trade (BOc2) fell 0.59%.

Palm oil follows the price movements of its rival vegetable oils, as it competes for a share of the global vegetable oil market.

The ringgit, the palm oil trading currency, strengthened 0.22% against the dollar, making the commodity more expensive for buyers holding foreign currency.
Source: Reuters