Malaysia Palm Oil Prices Slide Amid Weakened Export Estimates
Palm oil prices in Malaysia have fallen again due to weak export estimates and a stronger ringgit, which has made overseas buyers cautious.
The benchmark December palm oil contract on Bursa Malaysia Derivatives (BMD) dropped 0.84% to 4,857 ringgit a metric ton, with traders attributing the decline to a firmer ringgit and softer crude oil prices.
Cargo surveyors estimated that September 1st-20th exports of Malaysian palm oil products fell by 12.8%-24.7% from the previous month, which has led to increased hedging in the futures market and put pressure on BMD palm oil contracts.
A Kuala Lumpur-based trader noted that falling open interest, or the number of outstanding futures positions, could indicate long liquidation, thinning liquidity, and making prices more volatile around the next export update or currency move.