Palm slips over 1% on weaker soyoil, bearish MPOB data

Malaysian palm oil futures fell more than 1% on Thursday, according to Business Recorder, marking a third consecutive session of losses. The benchmark November contract on Bursa Malaysia Derivatives closed down 81 ringgit, or 1.63%, at 4,885 ringgit ($1,202.61) per metric ton. Traders pointed to softer soyoil and bearish supply and demand figures as the main pressures.

Malaysia's palm oil inventories climbed to an eight-month high in August, as output reached its highest since December while exports declined, based on MPOB data. Cargo surveyors estimated that palm product exports for September 1 to 10 dropped between 11.7% and 17.5% from a month earlier. David Ng, a proprietary trader at Iceberg X Sdn Bhd, said slow exports combined with higher production were behind the rising stocks.

Crude oil also gained, with Brent pushed above $100 a barrel in the previous session after Iran and the United States carried out their most intense attacks on shipping since their conflict began six months ago. Higher crude prices make palm more appealing as a biodiesel feedstock, while the ringgit rose 0.17% against the dollar, making the commodity slightly pricier for foreign buyers.