Comments
Malaysian palm oil futures slid for a sixth consecutive session on Wednesday to their lowest in three months on pressure from expectations of lower demand in top importer India and rising domestic production.
The benchmark third-month palm oil contract on the Bursa Malaysia Derivatives Exchange finished down 1.3 per cent at 2,089 ringgit a tonne. Earlier in the session, the market hit its weakest since mid-December at 2,070.
World palm oil demand may suffer its first contraction in two decades during the 2019-20 crop year due to rising domestic oilseed supplies in India and slowing demand in Europe and China, industry participants told Reuters.
“There is talk among traders that palm oil is being sold in India at below the market price from old stocks,” a Kuala Lumpur-based trader said.
“This might have an impact on demand.”
However, top analysts painted a bullish picture at last week's key conference in Kuala Lumpur.
Malaysian palm oil futures are set to trade between 2,350 ringgit and 2,450 ringgit a tonne in four to six months, leading industry analyst Thomas Mielke said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.