Malaysian palm oil futures weaker
JAKARTA: Malaysian palm oil futures dropped on Thursday, snapping four consecutive session of gains, as weakness in Chicago soyoil weighed, while strong export data limited losses.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost 61 ringgit, or 1.55%, to 3,862 ringgit ($902.34)a metric ton at closing.
Exports of Malaysian palm oil products for May 1 - 15 rose 14.2% to 514,713 tonnes from 450,657 tonnes shipped during April 1 - 15, independent inspection company AmSpec Agri Malaysia said on Thursday. 'The positive export figures do provides support but Chicago soyoil dropped 270 points, thus our CPO futures is weighed down by it,' a Kuala Lumpur-based trader said.
Soyoil prices on the Chicago Board of Trade (CBOT) plunged 5.72%, their steepest daily drop in nearly two years as falling crude oil prices and mounting uncertainty over the US biofuel policy pressured the market.
Dalian's most active soyoil contract dropped 0.80%, while its palm oil contract for June delivery lost 0.74%. Palm oil tracks the prices of rival edible oils as it competes for a share of the global vegetable oils market.
Starting May 17, Indonesia will raise its crude palm oil (CPO) export levy to 10% of its CPO reference price from the current 7.5% to finance the country's increased biodiesel blending mandate.
India's vegetable oil imports plunged to their lowest in more than four years in April, led by declines in palm oil imports, dragging inventories to their lowest in nearly five years, a leading industry body said.
The Rosario grains exchange raised its estimate for Argentina's 2024-25 soybean production to 48.5 million metric tons from 45.5 million tons earlier.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
India's granaries overflow as rice stocks hit record, wheat surges
MUMBAI: India's rice stocks in government warehouses rose 18% from a year ago to a record high for the start of June, while wheat stocks have hit their highest level in four years on higher procurement from farmers, official data showed on Wednesday. Record rice stocks will help the world's biggest exporter increase shipments, while an improvement in wheat inventories will help the federal government tame any price spikes later this year by increasing open market sales. State reserves of rice, including unmilled paddy, totalled a record 59.5 million metric tons as of June 1, far exceeding the government's target of 13.5 million tons for July 1. Wheat stocks stood at 36.9 million tons on June 1, well above the government's target of 27.6 million tons, the data showed. 'Rice stocks have piled up way too much. The government really needs to bring them down before the next buying season kicks off in October,' said a New Delhi-based dealer at a global trading firm. India, which accounts for around 40% of global rice exports, removed the last of its export curbs on the grain in March 2025, with the initial restrictions having been imposed in 2022. Wheat stocks have risen to a comfortable position mainly because of higher procurement, which will help New Delhi sell more wheat to bulk consumers during the lean supply season, said a Mumbai-based dealer. The government has so far brought 30 million tons of wheat from farmers, the most in four years, according to data compiled by Food Corporation of India (FCI). Disappointing harvests in the past three years and lower purchases by the FCI had pushed up prices of the staple grain and raised expectations that India may be forced to import wheat for the first time in seven years.
Business Recorder
4 hours ago
- Business Recorder
Chicago soybean higher on US-China trade hopes
PARIS/SINGAPORE: Chicago soybean prices ticked up on Wednesday to hold close to a two-week high, as investors cautiously welcomed news that US and Chinese officials agreed on a framework to preserve a truce in their countries' trade war. Corn and wheat also edged higher, with corn moving away from a six-month low and wheat from a near two-week low on Tuesday, though favourable US and global production prospects continued to curb the cereal markets. Price moves were limited, with traders awaiting more details on the outcome of the US-Chinese talks and watching for US inflation data later on Wednesday. Grain markets are also turning their attention to monthly US Department of Agriculture world crop forecasts on Thursday. The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% at $10.59-3/4 per bushel by 1050 GMT, near Tuesday's peak that was the highest since May 28. 'The soybean market has stabilised. We're going to have to wait to see what happens next in the trade talks,' Argus Media analyst Maxence Devillers said. China is the world's biggest soybean importer, while the United States is the No. 2 exporter of the oilseed. Chinese retaliatory tariffs on US agricultural goods have curbed soybean trade, with Brazil dominating record Chinese soybean imports in May. After a bumper Brazilian harvest, a good start to the US growing season was also hanging over the soybean market. In cereals, CBOT wheat added 0.2% to $5.35-3/4 a bushel, after slipping to its lowest since May 29 on Tuesday, while corn gained 0.7% to $4.42 a bushel after reaching its weakest level since Dec. 5 in the previous session. Wheat prices came under pressure after the US Department of Agriculture raised its ratings for both spring and winter wheat crops, tempering concerns about rain damage in the run-up to harvesting. Supply prospects have also been bolstered by a satisfactory crop outlook in top wheat exporter Russia. 'There's not much to make prices rebound at the moment when you look at fundamentals, the crop outlook is decent,' Devillers said of wheat. In corn, brisk US exports were lending some support, but the feed grain market was also pressured by favourable crop conditions in both the United States and Brazil.
Business Recorder
4 hours ago
- Business Recorder
Housing scheme with SBP's help: Rs5bn set aside for mark-up subsidy
KARACHI: The federal government has allocated Rs 5 billion in the budget FY26 for a mark-up subsidy under a low-cost housing scheme, to be launched in collaboration with the State Bank of Pakistan (SBP) in the next fiscal year, aimed at enabling individuals to build homes through affordable credit. The federal government has announced a number of incentives and positive measures for the construction sector and housing sector in the next fiscal year budget. Previously, an affordable housing finance scheme titled 'Mera Pakistan Mera Ghar' was abruptly suspended in June 2022, by the federal government to cut the subsidy expenditures and since then, no new affordable housing initiative has been introduced. Housing finance schemes: Pakistan govt ready to offer 100% guarantees to banks Now, aimed to address the housing shortage in the country and support the housing and construction sector, Finance Minister Muhammad Aurangzeb has announced a new housing scheme in the upcoming budget. As per the budget proposals for FY26, a proportionate tax credit will be given on the profit paid on loans obtained for the construction or acquisition of a house measuring up to 250 square yards or a flat with an area of 2,000 square feet or less. Accordingly, an amount of Rs 5 billion has been allocated in the budget FY26 for mark-up subsidy for low-cost housing. In addition, Rs 1 billion has been allocated as subsidy to Naya Pakistan Housing Authority (NPHA). Experts have warmly welcomed the initiatives announced in the federal budget aimed at revitalizing the housing and construction sector, calling them timely, progressive, and essential for Pakistan's economic revival. Dr Anosh Ahmed, a US-based real estate consultant has applauded the government for recognizing the sector's critical role in national economic growth, employment generation, and industrial development. He noted that the construction industry serves as a backbone for numerous allied industries, including cement, steel, electrical equipment, and home furnishings. 'A strong construction sector leads to stronger industrial output and job creation across multiple value chains,' he said. He particularly praised the government decision to reduce the rate of withholding tax on property purchases from 4 percent to 2.5 percent, from 3.5 percent to 2 percent, and from 3 percent to 1.5 percent. He emphasized that these reductions will ease the financial burden on investors, builders, and homebuyers, making real estate transactions more viable and attractive. In addition, he welcomed the proposed abolition of the 7 percent Federal Excise Duty on the transfer of commercial properties, plots, and houses, calling it a decisive step toward removing structural barriers and encouraging real estate investment. 'The introduction of tax credits schemes would support middle-income families and encourage the development of low-cost housing schemes,' he added. He further endorsed the government's plan to promote mortgage financing through a comprehensive system, supported by a dedicated policy from the State Bank of Pakistan. Copyright Business Recorder, 2025
