Palm oil drops on profit-taking after reports of weaker export data
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost RM14, or 0.33 per cent, to RM4,210 (US$991.29) a metric ton, as of 0232 GMT.
According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for the July 1-15 period fell 5.3 per cent, from June 1-15, while according to cargo surveyor Intertek Testing Services, it fell 6.2 per cent.
Soyoil prices on the Chicago Board of Trade were slightly down 0.05 per cent. Dalian's most-active soyoil contract edged 0.12 per cent higher, while its palm oil contract slipped 0.11 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.17 per cent against the dollar, making the commodity cheaper for holders of foreign currencies.
Palm oil may retest resistance at RM4,231 per metric ton, with a good chance of breaking above it and rising into the RM4,254 to RM4,292 range, Reuters technical analyst Wang Tao said.
Asian stocks dithered ahead of earnings from heavyweight technology companies and as market anxiety lingered over the uncertain tenure of Federal Reserve chief Jerome Powell.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
MARC Ratings assigns AA+ credit rating to Perak, cites low debt, healthy reserves
PETALING JAYA: Malaysian Rating Corporation Bhd (MARC Ratings) has assigned a sub-sovereign credit rating of AA+ with a stable outlook to Perak, based on its sub-sovereign rating scale. The rating, although unsolicited, reflects the state's prudent fiscal management, its strong commitment to strategic, development-focused spending, and a notably low debt burden – all supported by healthy reserve levels. 'The stable outlook reflects our expectation that Perak will continue to uphold disciplined fiscal practices, maintain high levels of development investment, and preserve its low debt and strong reserves,' MARC Ratings said in a statement. 'The successful execution of its economic and social development strategies could further strengthen its credit profile over time.' Perak has consistently demonstrated sound fiscal management, maintaining a near-balanced fiscal position even while allocating a significant portion of its budget – averaging over 30% between 2019 and 2023 – to development spending, the rating agency said. Over the same period, the state's total revenue grew at a compound annual rate of 2.6%, slightly outpacing its operating expenditure growth by 0.2 percentage point. This enabled Perak to maintain a balanced fiscal position while pursuing its development objectives. A key revenue driver has been the steady increase in tax collections, primarily from quitrent and royalties. In 2023, tax revenue accounted for 46.1% of total income, significantly exceeding both national and peer medians. Perak contributed 5.3% to Malaysia's real gross domestic product (GDP) in 2023, positioning it as a mid-sized contributor to the national economy. The state's GDP growth closely mirrored its revenue growth, averaging 2.5% annually from 2019 to 2023. Looking ahead, MARC Rating noted that while Perak's financial management remains sound, operating expenses are expected to rise due to planned increases in civil servant salaries and pension adjustments. In anticipation, the Perak government has budgeted for a deficit in 2025. However, the state is expanding its revenue-generating initiatives, which are expected to improve its fiscal standing over time. Perak maintains a conservative debt profile. It has not undertaken any new borrowings since 2016 and has maintained a solid debt servicing record. As of 2023, Perak's outstanding debt stood at RM159.8 million, the third lowest among Malaysian states, behind only Penang and Selangor. Between 2019 and 2023, Perak recorded an average debt-to-GDP ratio of just 0.2% and a debt-to-revenue ratio of 17.3%, both of which are well below the national and peer medians. Meanwhile, the state's consolidated funds increased to RM1.5 billion in 2023, up from RM1.3 billion in the previous year. The reserves covered 126.2% of annual expenditure and exceeded the state's outstanding debt several times over, offering ample fiscal flexibility and shock absorption capacity for future capital investments and economic initiatives. MARC Ratings also highlighted Perak's political landscape, which has seen alternating ruling coalitions in recent elections. While smaller development projects can be completed within a single administrative term, larger, multiphase initiatives – such as the Lumut Maritime Industrial City and Silver Valley Technology Park – would benefit from greater political continuity. 'Conversely, any significant shifts in development priorities or weak socioeconomic outcomes could introduce downward pressure on the rating,' the agency warned, emphasising the need for strategic consistency and long-term policy focus to translate development plans into meaningful economic progress.
New Straits Times
5 hours ago
- New Straits Times
China starts construction of Tibet mega-dam
BEIJING: China started building a mega-dam Saturday on a river running through Tibet and India, with Premier Li Qiang attending the commencement ceremony, state media said. Beijing approved the project in December on the river – known as Yarlung Tsangpo in Tibet and Brahmaputra in India – linking it to the country's carbon neutrality targets and economic goals in the Tibet region. "The electricity generated will be primarily transmitted to other regions for consumption, while also meeting local power needs in Tibet," state news agency Xinhua reported after the groundbreaking ceremony in southeastern Tibet's Nyingchi. Once built, the dam could dwarf the record-breaking Three Gorges Dam on the Yangtze River in central China – and have a potentially serious impact on millions of people downstream in India and Bangladesh. The project will entail constructing five hydropower stations, with the total investment estimated to be around 1.2 trillion yuan (US$167.1 billion), Xinhua said. India said in January it had raised concerns with China about the project in Tibet, saying it will "monitor and take necessary measures to protect our interests." China "has been urged to ensure that the interests of the downstream states of the Brahmaputra are not harmed by activities in upstream areas", India's foreign ministry said then. In December, Beijing's foreign ministry said that the project would not have any "negative impact" downstream, adding that China "will also maintain communication with countries at the lower reaches" of the river. Besides downstream concerns, environmentalists have also warned about the irreversible impact of such mega projects in the ecologically sensitive Tibetan plateau. Both India and China, neighbours and rival Asian powers, share thousands of kilometres of disputed borders, where tens of thousands of soldiers are posted on either side.
New Straits Times
6 hours ago
- New Straits Times
Sabah Blue Economy on track to yield RM3.25bil annually from marine harvests
KOTA KINABALU: The Sabah Blue Economy is estimated to yield 491,000 tonnes of marine harvests such as fish and prawns annually, with a value of RM3.25 billion, said Chief Minister Datuk Seri Hajiji Noor. He said marine harvesting is one of 14 components of the Blue Economy that can be explored, such as renewable ocean energy, blue carbon, tourism, maritime transport, and marine biotechnology, among others. "There is more to Blue Economy than just deep-sea harvesting," he said in a speech read by Sabah Finance Minister Datuk Seri Masidi Manjun at the International Business Review (IBR) ASEAN Awards here yesterday. Also present was IBR Asia Group founder, director and chief executive officer Datuk Beatrice Nirmala. The chief minister also said that one of the most exciting aspects of ocean energy is the Ocean Thermal Energy Conversion (OTEC), which harnesses energy from the oceans. "OTEC power plants are currently being planned to span across 500km of coastline and, in time, to be able to generate 20,000MW of green energy, an unprecedented scale globally. This is not only a gamechanger for the country, it is a gamechanger for the region," he said. Hajiji said the Blue Economy Industrial Park has been established in Kudat as part of three new industrial parks approved by the state government, along with Kota Belud and Beaufort, all strategically located to grow investment opportunities. On the investment front, Hajiji said Sabah had recorded RM17.41 billion from 73 companies in overall approved foreign and domestic investments in the manufacturing sector since September 2020, with 52 companies already setting up businesses in the state with a total investment of RM7.8 billion, creating 3,636 jobs. Between 2022 and 2024, Sabah received new investment proposals worth an additional RM42.3 billion, which will create 32,996 jobs, he added. The chief minister highlighted that Sabah had sealed the Commercial Collaborative Agreement with Petronas, allowing the state to have more participation in the oil and gas industry. This includes 50 per cent equity from the Samarang oil and gas field, 25 per cent equity from Samur, and a 25 per cent equity in the US$3.1 billion (US$1=RM4.24) floating liquefied natural gas (ZLNG) investment in Sipitang. To support the growing investments, the state government has launched the Sabah Energy Roadmap and Master Plan 2040. This initiative aims to generate 700MW within the next 1 to 2 years. Additionally, the government has allocated RM679.85 million in 2024 to address immediate water shortages. Long-term plans also include the completion of the Ulu Padas hydropower. Meanwhile, nine winners were announced at the event, namely Institut Jantung Negara for corporate excellence in the healthcare sector, Clean Kinetics Pte Ltd for corporate excellence in the renewable energy sector, Millenium Minerals Ltd for corporate excellence in the mining industry, Sabah Port Sdn Bhd for corporate excellence in the logistics sector, AiRTS Pte Ltd for innovative technology in the artificial intelligence sector, Alpine Integrated Solution Sdn Bhd for corporate excellence in the event management sector, and Education Malaysia Global Services for corporate excellence in the education sector. Negeri Sembilan was named Most Progressive State in Malaysia in 2024, while Sabah was recognised as the Most Outstanding State in Malaysia for 2024.
