MUMBAI, 6 Sep (Commoditiescontrol): Malaysian crude palm oil (CPO) futures reversed earlier gains on Friday, putting the market on track for a weekly loss as traders anticipate key data from the Malaysian Palm Oil Board (MPOB) next week.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell by 32 ringgit, or 0.82%, to 3,885 ringgit ($897.23) per metric ton by the midday break, marking a 2.31% decline so far this week.
A local trader noted that the futures appear to be trading within a range of 3,850 to 3,950 ringgit as the market awaits the MPOB report scheduled for release on Tuesday, Sept. 10.
A Reuters survey predicts Malaysia’s palm oil inventories rose by 7.31% to a six-month high of 1.86 million metric tons by the end of August, primarily due to weak export demand.
In related markets, Dalian's most-active soyoil contract fell 0.34%, while palm oil edged up 0.23%. The Chicago Board of Trade saw a 1.14% decline. Palm oil prices are influenced by movements in related oils, as they compete for a share in the global vegetable oils market.
Indonesia, the world’s largest palm oil exporter, plans to reduce export duties to boost competitiveness and raise farmers’ incomes. Meanwhile, the Malaysian ringgit strengthened by 0.13% against the dollar, making palm oil less attractive to foreign buyers.
Oil prices also saw a slight uptick, driven by a significant U.S. crude inventory withdrawal and a possible delay in OPEC+ production hikes. Stronger crude oil prices increase palm oil’s appeal as a biodiesel feedstock.
Technically, palm oil may retest support at 3,864 ringgit, with a potential decline into the 3,777-3,821 range if this level is breached, according to analysts.
(By Commoditiescontrol Bureau; +91 98201 30172)
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