Palm Oil Prices Hold Steady Amid Conflicting Market Signals
Palm oil prices in Malaysia held steady recently, despite some conflicting signals from other markets.
The benchmark November contract slipped by 0.12% to 4,801 ringgit a ton, as traders weighed the impact of firmer Chinese edible oils and crude prices against a stronger ringgit and weaker US soyoil.
China's Dalian soyoil and palm oil contracts edged higher, which should boost demand for palm oil as it can be blended into biodiesel. However, this support was offset by the strengthened ringgit, which raised the effective US dollar cost of ringgit-priced palm oil for overseas buyers.
Cargo surveyor Intertek reported a 7.9% drop in Malaysian palm oil product exports for August 1st-15th compared to the previous month, highlighting the risk that demand can cool quickly when prices become less competitive.