KUALA LUMPUR: Malaysian palm oil futures fell on Thursday, extending losses from the previous session, amid concerns over rising inventories and production, while weak export demand further pressured the market.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange shed RM29, or 0.68 per cent, to RM4,238 (US$1,003.08) a metric ton at the midday break.

Crude palm oil futures traded lower on ongoing concerns over rising output and stocks in the coming weeks, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

“The recent weak export demand is also seen as weighing down on market sentiment.”

Cargo surveyors estimated July palm oil exports to have fallen between 6.7 per cent and 9.6 per cent.

The Malaysian Palm Oil Board is scheduled to release its supply and demand data on Aug 11.

Dalian’s most-active soyoil contract rose 0.36 per cent, while its palm oil contract shed 0.42 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) gained 0.11 per cent.

Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.

Oil prices rose 1 per cent, pausing a five-day losing run, on signs of steady demand in the US, the world’s biggest oil user, though uncertainty about the macroeconomic impacts of US tariffs limited gains.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Indonesian goods exported to the US will attract a 19 per cent tariff from Aug 7, although the country is still negotiating exemptions for some of its key exports, such as crude palm oil.

The ringgit, palm’s currency of trade, strengthened 0.05 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

Source: New Straits Times