Palm oil futures in Dalian tumble over 6%, Malaysia palm oil hit lowest since June 2021

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

China’s most-traded palm oil futures contract on the Dalian Commodity Exchange, for January 2023 delivery, tumbles more than 6% to drop below 7,300 yuan mark and hit 7,296 yuan per tonne, the lowest level since June 2021.

The benchmark palm oil futures in Malaysia tumbled as much as 7.7% to hit the lowest level since June 2021.

The concern over rising output in Malaysia coupled with the weakness in the Chicago bean oil market has dragged crude palm oil futures contract on Bursa Malaysia Derivatives (BMD) lower. The Peninsula Palm Oil Millers’ Association (SPPOMA) estimated that production for Sept 1 – 15 rose by 7.50%, against Aug 1-15, while fresh fruit bunches for the period improved 7.32% on a month-on-month comparison.

Meanwhile, palm oil also retreated as slew of interest rate hikes placed downward pressure on vegetable oil prices.