Palm oil extends falls on weaker soyoil and exports

By Reuters News

By Dewi Kurniawati

JAKARTA, Oct 1 (Reuters) - Malaysian palm oil futures fell for a fifth straight session on Thursday, tracking weakness in Chicago soyoil prices and weighed down by soft September exports and rising production.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange lost 19 ringgit, or 0.41%, to 4,591 ringgit ($1,123.59) a metric ton in morning trade.


FUNDAMENTALS

  • Soyoil prices on the Chicago Board of Trade were down 0.26%. Chinese markets are closed from October 1 to 7 for holidays.

  • Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

  • Indonesia has set its October crude palm oil reference price at $1,042.15 per ton, a trade ministry regulation showed on Wednesday.

  • Exports of Malaysian palm oil products for September fell between 17.1% and 28.8% from a month earlier, cargo surveyor Intertek Testing Services and AmSpec Agri Malaysia said on Wednesday.

  • India's sunflower oil imports are likely to rise 30% in the 2026/27 marketing year to 3.5 million tons, as a cut in import duties has lowered prices and boosted demand, while palm oil imports are likely to remain steady, the head of a leading industry body told Reuters on Wednesday.

  • The ringgit , palm's currency of trade, weakened 0.25% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

  • Oil prices were nearly flat in early Asian trade on Thursday, following the previous day's gains and steep monthly rises, as investors assessed the outcome of US-Iran peace talks and the outlook for Middle East crude exports.O/R

  • Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

  • Palm oil may retest support at 4,588 ringgit per ton, a break below which could open the way towards the 4,533-4,553 ringgit range, according to Reuters technical analyst Wang Tao. TECH/C



MARKET NEWS

  • Asian stocks were subdued on Thursday and global bonds remained under pressure after a brutal September as investors weighed a slower-than-expected rise in US inflation in August that lessens the probability of a rate hike later this month. MKTS/GLOB


    DATA/EVENTS (GMT)


    0030 Japan S&P Global Mfg PMI, Comp Op, SVC PMI Flash SA Sep

    0645 France Business Climate Mfg, Overall Sep

    0800 Germany Ifo Business Climate, Curr Conditions, Expectations New Sep

    1230 US Initial Jobless Clm 19 Sep, w/e

    1400 US New Home Sales-Units Aug


    ($1 = 4.0860 ringgit)


tech https://tmsnrt.rs/4ykBCwV

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