Malaysian palm oil drifts lower
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 29 ringgit, or 0.71%, to 4,062 ringgit ($963.02) a metric ton at the close. The contract rose 1.27% this week.
Crude palm oil prices were lower, tracking weakness in soybean oil and Dalian palm olein prices, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
'Profit-taking activities after the recent price rally also affected the market,' he added.
Dalian's most-active soyoil contract fell 0.95%, while its palm oil contract shed 0.07%. Soyoil prices on the Chicago Board of Trade lost 0.96%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Oil futures fell slightly after Iran reaffirmed its commitment to nuclear non-proliferation, while major producers from the OPEC+ group are set to agree to raise their output this weekend.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm's currency of trade, strengthened 0.05% against the dollar, making the commodity slightly expensive for buyers holding foreign currencies.
Malaysia's palm oil inventories likely dropped for the first time in four months in June as production fell unexpectedly while export demand remained robust for the tropical oil, a Reuters survey showed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 hours ago
- Business Recorder
India rice rates extend decline
BENGALURU, MUMBAI, BANGKOK, DHAKA AND HANOI: Indian rice export prices fell for a third straight week, pressured by weak demand, a soft rupee and oversupply, while domestic rates in Bangladesh remain high despite a bumper harvest. India's 5% broken parboiled variety was quoted at $375-$380 per ton, its lowest since mid-2023. Last week, prices ranged between $377 and $382. Indian 5% broken white rice was priced at $372 to $377 per ton this week. The rupee's depreciation and ample supplies from last year's crop are allowing exporters to lower prices, while overseas demand remains subdued, said a New Delhi-based trader with a global trade house. Meanwhile, rates in Bangladesh have been high despite a bumper harvest, which has risen 15% over the past year. Although summer rice production hit a record, neither farmers nor consumers are benefiting amid high input costs, market manipulation by middlemen, and inefficiencies in the supply chain, market insiders said. Vietnam's 5% broken rice was offered at $381 per metric ton, according to the Vietnam Food Association. Last week, traders said prices were at $380-$390 per ton. Earlier this week, state media reported that the Philippines remained Vietnam's top rice buyer in the first half of this year, taking 41.4% of 4.9 million tons shipped. Ivory Coast and Ghana accounted for 10.7% and 10.5%, respectively, while exports to Malaysia dropped 61%. 'Some traders are increasing their purchases from farmers for their future contracts,' a trader based in Ho Chi Minh City said, adding that this has pushed up domestic prices slightly. Thailand's 5% broken rice was unchanged from last week at $380-$385 per tonne, traders said. Although the dollar is weak, prices should rise, but there are still no buyers so rates have been kept low, said a Bangkok-based trader, adding that supply has been gradually entering the market. Demand has been steady, with regular customers from India, America and Latin America buying, said another trader. The yield from the August harvest should be strong from good water levels, the trader added.
Business Recorder
8 hours ago
- Business Recorder
Palm oil extends gains on strong rival oils
KUALA LUMPUR: Malaysian palm oil futures ended higher on Thursday for a third consecutive session, tracking gains in rival edible oils, though higher production estimates and a stronger ringgit capped the rise. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 15 ringgit, or 0.35%, at 4,330 ringgit ($1,027.77) a metric ton at the close. 'The higher-than-expected production scenario has halted the rally in palm oil prices, while the ringgit continues to strengthen against the US dollar, which is also contributing to the decline in the ringgit-denominated contract,' said Anilkumar Bagani, research head at Sunvin Group. Adding to the cautious mood, fresh palm oil purchases by India have slowed down due to a sharp surge in prices, Bagani said. Dalian's most-active soyoil contract rose 1.16%, while its palm oil contract added 1.34%. Soyoil prices on the Chicago Board of Trade were up 0.59%. Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. The ringgit, palm's currency of trade, strengthened 0.28% against the dollar, making the commodity more expensive for buyers holding foreign currencies. Oil prices rose more than 1%, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories.
Business Recorder
8 hours ago
- Business Recorder
TikTok will go dark in US without Chinese approval of sale deal: Lutnick
BENGALURU: US Commerce Secretary Howard Lutnick said on Thursday that TikTok will have to stop operating in the United States if China does not approve a deal for the sale of the Chinese-owned short video app that is used by some 170 million Americans. Lutnick, speaking on CNBC, also said the United States must control the algorithm that makes the social media platform work. Last month, President Donald Trump extended by 90 days to September 17 a deadline for China-based ByteDance to divest the US assets of TikTok. Trump's action took place despite a 2024 law that mandated a sale or shutdown by January 19 this year if there had not been significant progress. 'China can have a little piece or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm,' Lutnick said. 'If that deal gets approved, by the Chinese, then that deal will happen. If they don't approve it, then TikTok is going to go dark, and those decisions are coming very soon.' TikTok did not immediately comment. A deal had been in the works this spring that would spin off TikTok's US operations into a new US-based firm, majority-owned and operated by US investors. This stalled after China indicated it would not approve it following Trump's announcements of steep tariffs on Chinese goods.
