Malaysian palm oil futures tumbled on Monday after top palm oil producer Indonesia said it was considering a higher export quota to reduce high domestic inventories amid concerns over rising stocks. in Malaysia.
The benchmark oil contract for September delivery on the Bursa Malaysia Derivatives Exchange fell 7.65% to settle at 4,348 ringgit ($985.72) per tonne, after Friday’s 4% drop.
It fell as much as 9.98%, touching its lowest level since September 22, before recouping some losses.
Indonesia has proposed increasing this oil export quotas and is considering raising mandatory levels of biodiesel in fuel blends to boost prices for farmers at a time when domestic oil inventories are high, it said on Saturday. a high-ranking minister.
“The increased export availability of Indonesian palm oil is somewhat bearish for such ordinary oil origins, especially Malaysia, and the market is reacting,” said Anilkumar Bagani, head of research at the Mumbai-based vegetable oils broker. , Sunvin Group.
This oil falls 4% on recession fears, higher supply outlook
Indonesia’s latest moves came as some market participants were concerned about a recovery in Malaysian oil stocks amid expectations of higher production and slow export data, a Kuala Lumpur-based trader added.
Malaysian palm oil product exports for June fell 7.4% month-on-month to 1.23 tonnes, cargo inspector Societe Generale de Surveillance said on Friday.
Meanwhile, Dalian’s most active soybean oil contract fell 1.91% and its contract fell 2.15%. This is affected by price movements of related oils as they compete for a share of the global vegetable oil market.