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Palm hits 1-month low on weak exports

April 26, 2023 at 10:00 pm | Economic Affairs

April,26(Agencies)—Malaysian palm oil futures fell for a fourth consecutive session on Wednesday to close at their lowest level in a month, as weak exports and rival oils weighed on market sentiment.
Benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange lost 64 ringgit, or 1.76%, to 3,571 ringgit ($801.57) a tonne, its lowest close since March 27.
“The price erosion in competing edible oils initiated the lower opening and intermittent selling due to margin calls,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Top producer Indonesia plans to set its crude palm oil reference price at $955.53 per tonne for May 1 to 15, up from $932.69 in the last two weeks of April, senior economic ministry official Musdhalifah Machmud said.
Dalian’s most-active soyoil contract gained 0.6%, while its palm oil contract rose 0.1%. Soyoil prices on the Chicago Board of Trade were up 0.2%. Prices had declined last week.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Further weighing on prices, export shipments from Malaysia during April 1-25 fell 18.4% from a month earlier, independent inspection firm AmSpec Agri Malaysia reported on Tuesday.
Another cargo surveyor, Intertek Testing Services, said exports declined by 14%.

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