A sharp rise in estimated Malaysian palm oil exports failed to lift futures on Oct. 21, with the January contract falling 1.02% despite gains in related markets.
At the Bursa Malaysia Derivatives Exchange, January palm oil futures settled at RM4,768 per metric ton, down RM49, Reuters reported. Cargo surveyors estimated that exports of Malaysian palm oil products during Oct. 1-20 were 58.5% to 78.4% higher than a month earlier.
A trader in Kuala Lumpur attributed the decline to profit-taking near the upper end of the contract’s trading range, Reuters reported. The account offers an explanation for the day’s selling, even as the export estimates pointed to stronger shipments.
Palm oil contracts on the Dalian Commodity Exchange rose 1.31%, while soyoil contracts gained 0.26%. Chicago Board of Trade soyoil fell 0.12%. Palm oil competes with other vegetable oils for buyers, making their price moves relevant to the market.
Crude oil prices also rose by more than $1 on Oct. 21 amid concerns about supply disruptions linked to attacks on Gulf shipping and a lack of diplomatic progress toward ending the Iran war, Reuters reported. Higher crude prices can make palm oil more attractive as a biodiesel feedstock.
Reuters technical analyst Wang Tao identified RM4,706 to RM4,736 as a possible pullback range after the contract failed to move above RM4,834.
