Market News : Malaysian palm oil futures fell belw MYR 3,790 per tonne on Monday, the lowest in two months, and tracking the retreat for other vegetable oils as the sustained drop in crude oil prices limited demand for biofuel feedstock.
In the meantime, the EU agreed to set mandatory rules for companies selling a series of products, including palm oil, to ensure that its raw materials are not derived from deforested land, further pressuring global benchmark prices.
Still, further losses were capped by strong export data and expectations of lower output. According to cargo surveyors, exports of Malaysian palm oil rose by 5.6%-14.6% in the first ten days of December compared to those of the prior month.
Also, output in top producer Indonesia is expected to lower in the next marketing year as seasonal storms in South East Asia brought crop losses, according to the USDA’s WASDE report