Palm falls for second session on stock fears, weak exports

Malaysian palm oil futures closed lower for a second consecutive session on Thursday, Business Recorder reported, after earlier gains faded. The November contract on the Bursa Malaysia Derivatives Exchange fell 56 ringgit, or 1.13 per cent, to 4,902 ringgit ($1,213.82) a metric ton at the close.

Weak export demand, lack of fresh buying from destinations and softer Chicago soyoil were cited by Anilkumar Bagani, commodity research head at Sunvin Group, as limiting gains. Cargo surveyors estimated that August shipments of Malaysian palm oil products declined 6.5% to 14.9% month on month. A Reuters survey projected that Malaysian stockpiles would reach a seven-month peak this August, helped by production at its strongest in nine months.

Dalian soyoil slipped 0.13%, Dalian palm oil shed 0.44% and Chicago soyoil fell 1.89%. Lower crude prices, amid uncertainty over renewed US and Iran military strikes, make palm less attractive as biodiesel feedstock. The ringgit rose 0.11% against the dollar, leaving the commodity slightly costlier for buyers holding foreign currency.