JAKARTA:Malaysian Palm oil trade extended losses on Monday in line with rival edible oils, as concerns of COVID-19 lockdown in China weigh on demand expectation, although firm exports data cushioned some of the declines.
The benchmark palm oil trade contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 0.42% to 3,833 ringgit ($837.27) per tonne by midday break, setting for fifth consecutive days of decilnes.
The contract fell as much as 1.51% earlier in the session before paring some of the losses.
The drop in rival oils on the Dalian and Chicago exchanges put pressure on palm oil, but better export data and expectations of rainy season were lending support, a Kuala Lumpur-based trader said.
“Unless there is upset in export data and further drops in Dalian, we should be range trading at the moment.”
Exports of Malaysian palm oil products for Nov. 1-20 rose 9.6% to 997,216 tonnes, compared to shipments during Oct. 1-20, cargo surveyor Intertek Testing Services said on Sunday.
Other surveyors are due to provide their export data soon.
Rising COVID-19 infections in China continue to weigh on concerns over demand for edible oil, as Beijing’s most populous district urged residents to stay home on Monday, with at least one district in Guangzhou being locked down for five days.
(B-Trams) Analyst Said , As per this current senario We are analsysing that palm oil price will slumps more upto 3,500 Ringgint Per tonne and will trade between 3,500 – 4,000 Per Toone
Dalian’s most-active soyoil contract fell 1.44%, while its palm oil contract lost 1.62%. Soyoil prices on the Chicago Board of Trade were down 0.33%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.