Palm extends losses on weak rival oils, concerns over rising output, stocks
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 34 ringgit, or 0.8%, to 4,239 ringgit ($1,002.60) a metric ton at the close.
Crude palm oil traded lower due to weakness in the Dalian and the soyoil market during Asian hours, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
'Rising production and stock levels could be seen as weighing down on market sentiment as well,' he said.
Dalian's most-active soyoil contract fell 0.49%, while its palm oil contract shed 0.42%. Soyoil prices on the Chicago Board of Trade (CBOT) lost 0.29%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Palm snaps three-week rally on profit-taking, output concerns
Oil prices edged higher as investors assessed a trade deal between the United States and the European Union, while a stronger U.S. dollar and lower oil imports by India weighed on prices.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Cargo surveyors estimated exports of Malaysian palm oil products for July 1-25 to have fallen between 9.2% and 15.2% from a month earlier.
The ringgit, palm's currency of trade, weakened 0.24 against the U.S. dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
Japanese rubber down
SINGAPORE: Japanese rubber futures fell across major Asian exchanges on Friday and posted their first weekly decline following a six-week rally, pressured by subdued global demand and muted stimulus signals from China's Politburo meeting. The Osaka Exchange (OSE) rubber contract for January delivery was down 0.7 yen, or 0.22%, at 314.8 yen ($2.09) per kg. The contract has lost 5.09% so far this week. The rubber contract on the Shanghai Futures Exchange for September delivery dipped 410 yuan, or 2.79%, to 14,310 yuan ($1,985.07) per metric ton. The most active September butadiene rubber contract on the SHFE fell 125 yuan, or 1.08%, to 11,455 yuan ($1,589.03) per metric ton. In July, factory activity declined across Asia as weak global demand and ongoing uncertainty over US tariffs weighed on sentiment, PMI data showed. This week's highly anticipated Politburo meeting delivered no major policy shifts, as leaders reiterated their commitment to supporting the economy by regulating 'disorderly competition', but showed no sense of urgency to roll out major stimulus. Meanwhile, top rubber producer Thailand's meteorological agency forecasted less rain from August 1 to 4. The yen fell to 150.73 per dollar as US President Donald Trump imposed a new wave of tariffs. A weaker currency makes yen-denominated assets more affordable to overseas buyers. Japan will continue to push the US to implement a cut in automobile tariffs to 15% from 25%, a concession that European automakers have already secured, though major companies like Volkswagen, Porsche, and Mercedes-Benz have revised their outlooks downward. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. The front-month rubber contract on Singapore Exchange's SICOM platform for August delivery last traded at 164.2 US cents per kg, down 1%.
Express Tribune
a day ago
- Express Tribune
SBP pumps Rs13.3tr, raises Rs358b
Listen to article The State Bank of Pakistan (SBP) injected a record Rs13.33 trillion into the financial system on Friday through two major Open Market Operations (OMOs), signalling its continued effort to manage liquidity and stabilise financial markets. The injection was made through both conventional reverse repo purchases and Shariah-compliant Mudarabah-based instruments. Under the conventional OMO, the SBP injected Rs13.05 trillion, comprising Rs904.25 billion for a 7-day tenor at 11.02% and Rs12.15 trillion for a 14-day tenor at 11.01%. Bids were accepted on a pro-rata basis. The high participation, with total bids at Rs13.31 trillion, reflected strong demand from market participants. In the parallel Shariah-compliant OMO, the central bank injected Rs270 billion. This included Rs120 billion for 7 days at 11.15% and Rs150 billion for 14 days at 11.13%. The higher rates on Islamic OMOs indicated continued premium demand for Shariah-compliant liquidity. Additionally, the SBP raised Rs358 billion in the latest Pakistan Investment Bonds (PIB) auction, exceeding the Rs300 billion target. Investor interest remained strong, with total bids reaching Rs1,129 billion. According to AKD Securities, cut-off yields for shorter tenors increased. The 2-year bond yield rose by 24 basis points to 11.09%, the 3-year by 9bps to 11.14%, and the 5-year by 5bps to 11.44%. In contrast, the 10-year paper yield fell by 5bps to 12.15%. The 15-year bond was accepted at a cut-off yield of 12.45%, the first such result disclosed for this tenor. The rise in shorter-term yields reflected market concerns over near-term inflation and tight liquidity. Meanwhile, the decline in longer-term yields suggested investor confidence in long-term economic stability. The aggressive bidding highlighted strong investor appetite for government securities amid a stable interest rate outlook. The Pakistani rupee also appreciated by 0.05% on Friday. It closed at 282.72 against the US dollar, gaining 15 paisa from the previous day's rate of 282.87. In contrast to global trends, gold prices in Pakistan edged lower on Friday. This came despite bullion gaining nearly 2% internationally, driven by weaker US payroll data and renewed trade tensions that increased safe-haven demand. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the gold price per tola dropped by Rs100 to settle at Rs352,900. The price for 10 grams also fell by Rs86, closing at Rs302,555. This modest drop followed Thursday's steeper Rs2,000 per tola decline, reflecting currency movements and local demand pressure. Internationally, spot gold surged 1.8% to $3,350.67 per ounce as of (15:35 GMT), after rising as much as 2% earlier. The metal was up 0.4% for the week. Adnan Agar, Director at Interactive Commodities Gold, said gold touched an intraday low of $3,381 and a high of $3,455, trading near $3,448. He added that weak US data and tariff concerns linked to President Donald Trump drove the $60 spike. He expected bullish momentum to continue into Monday, with resistance near $3,460–$3,470.
Business Recorder
a day ago
- Business Recorder
Trump's tariffs send Asian FX markets reeling
BENGALURU: Asian currencies fell to multi-month lows on Friday with South Korea's won and Malaysia's ringgit bearing the heaviest losses as investors abandoned riskier regional assets after the US imposed new tariffs on dozens of trading partners. The won weakened 0.69% to an over two-month low of 1,401.53 against the dollar, while the ringgit dropped 0.5% to its weakest since June 23. Both currencies are set for their worst weekly performance since late February and late January, respectively. Among other currencies, the Taiwan dollar and Thai baht declined more than 0.3%, while the Philippine peso recovered from earlier six-month lows to trade flat. The MSCI emerging market currency gauge fell over 1% this week, abruptly ending a six-month rally in July and highlighting the vulnerability of regional assets to trade policy shifts. Late Thursday, US President Donald Trump signed executive orders imposing tariffs ranging from 10% to 41% on US imports from dozens of countries, utilising emergency powers and pressuring foreign leaders ahead of his self-imposed Friday deadline. India faces 25% levies on its US-bound exports, Taiwan 20%, Thailand and Malaysia 19%, while South Korea secured reduced 15% rates after intensive negotiations. Vietnam, Indonesia, the Philippines, Japan, and Cambodia have already secured agreements. 'Tariff rates settling at 15-20% for most of the region outside of China will hurt producers, narrow profit along the supply chain and curtail US demand,' said Alex Holmes, regional director for Asia Pacific at EIU, noting that core emerging market countries with stronger fundamentals are expected to prove more resilient than frontier economies. The broad-based tariff structure leaves emerging markets 'between a rock and a hard place,' forcing difficult choices between China and US trade relationships as they seek alternative strategies to mitigate economic fallout, Holmes added. The greenback rose 0.3% on Friday on greater clarity around Trump's trade policies. The dollar index climbed 2.5% this week to two-month highs. Regional equities showed mixed performance, with Kuala Lumpur and Jakarta shares rising over 1%, while Seoul tumbled 3.5% after the government proposed rolling back recent tax cuts. Central bank policy remains in focus, with the Monetary Authority of Singapore and Bank of Japan maintaining current rates alongside the US Federal Reserve. Thailand's rate decision looms this month, while India's central bank meets next week. 'A number of emerging market central banks appear to be shifting toward a more accommodative stance,' with India expected to deliver 'a dovish pause' before likely cutting rates in October, Barclays analysts said.
