Palm oil futures turn lower after four consecutive days of gains

On Thursday, May 6, Malaysian palm oil futures fell, ending a four-day rally. The main reason was the weakening of Chicago soybean oil prices, which put pressure on the palm oil market. However, Malaysia's strong export data limited the decline to a certain extent.

 

The benchmark palm oil contract for July delivery on the Malaysian Derivatives Exchange closed down 61 ringgit, or 1.55%, at 3,862 ringgit per ton, or about $902.34. The weak trend of soybean oil prices on the Chicago Board of Trade affected the sentiment of the entire vegetable oil market, and investors adjusted their long positions, causing palm oil prices to fall.

 

However, the bright performance of export data provided some support. According to data from shipping survey agencies, Malaysia's palm oil exports in the first two weeks of May increased significantly year-on-year, reflecting stable international demand. Market participants are paying attention to purchasing trends in major consumer countries such as Indonesia and India, while also assessing the potential impact of weather factors on production.

 

Overall, although short-term prices have adjusted, fundamental factors are still supportive, and market trends will be affected by external market fluctuations and export performance.