Palm falls over 1% on weaker rival oils, higher stocks

Malaysian palm oil futures dropped 1.62% to 4,609 ringgit per tonne by Thursday’s midday break, extending the decline to a fourth session, Business Recorder reported. The January contract lost 76 ringgit as weaker competing vegetable oils and expectations of larger October inventories weighed on sentiment. Traders also noted there had been no announcement on removing Malaysia’s crude palm oil export tax.

Soyoil contracts in Dalian and Chicago also declined, while Dalian palm oil fell 1.89%. Lower crude prices reduced palm oil’s appeal as a biodiesel input, and a 0.29% rise in the ringgit made the commodity costlier for buyers using other currencies. Palm oil prices are influenced by competing edible oils, crude markets and currency movements.