Palm slides on lower Indonesian export costs, weak crude, rising stockpiles

Malaysian palm oil futures ended lower on Monday, with the January contract losing 31 ringgit, or 0.66%, to 4,650 ringgit ($1,144.19) per metric ton. Business Recorder reported that cheaper Indonesian export charges put Malaysian sellers under added competitive pressure, while softer crude prices and inventory concerns weighed on sentiment.

Indonesia’s lower November benchmark price for crude palm oil and reduced export levy led Malaysian prices to adjust downward, a Kuala Lumpur trader told the publication. The contract also faced pressure as crude oil dropped nearly 4% and traders awaited clarity on a possible Malaysian export-tax waiver; surveyors, however, estimated Malaysian palm product exports in October were up 45.4% to 73.5% from September. The report said weaker oil prices reduce palm’s appeal as biodiesel feedstock, while Dalian palm and soyoil contracts rose 0.92% and 0.54%, respectively, and Chicago soyoil fell 0.44%. The ringgit weakened 0.35% against the US dollar.