Palm oil snaps three-week rally on profit-taking
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 54 ringgit, or 1.25%, to 4,276 ringgit ($1,013.75) a metric ton at the close.
The contract fell 0.9% this week. Crude palm oil prices have dipped after a recent rally due to profit-taking, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari. Signs of a recovery in production amid tepid demand are also contributing to the decline, he added.
Malaysia's crude palm oil production is likely to rise to 19.5 million metric tons in 2025 from 19.3 million tons a year earlier, the Malaysian Palm Oil Board said. Cargo surveyors estimated that exports of Malaysian palm oil products for July 1-25 fell between 9.2% and 15.2% from a month earlier.
'The market is aware of potential output increases in the third quarter and current demand trends suggest that unless there is a pick up in demand, end stocks could rise above 2.1 million metric tons in July,' Paramalingam said.
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