Malaysian palm oil trades at lowest level in 4 months
Malaysian palm oil futures extended losses to below RM3,400 a tonne in the third week of June, hovering at levels not seen in 4 months, and extending an 11.3% plunge in the previous week, amid concerns over lower exports and expectations of higher stocks and output.
Bearish momentum in Chicago Board of Trade soy oil futures also weighed, due to worries over a possible US reduction in biodiesel production.
Malaysia’s exports during June 1-10 declined 14.3% from the same period in May with the palm oil stocks rising 1.49% from the previous month to 1.57 million tonnes.
The palm oil market rallied to an all-time record of RM4,506 a tonne on May 12th amid tight global edible oil supplies and a shortage of migrant workers on Malaysia’s plantations due to a prolonged freeze on hiring by the government due to Covid-19.
The biggest producers of palm oil are: Indonesia, Malaysia, Nigeria, Thailand and Colombia. The contract size is 25 metric tons and it’s traded at Bursa Malaysia.
Source: Trading Economics