Malaysian palm oil futures fell for a fifth straight session on Wednesday (Sept 28), tracking weaker rival oils while lingering concerns of oversupply also weighed on prices.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 1.5% to RM3,470 per tonne in early trade.
The contract lost more than 9% in the previous four sessions.
In the first half of 2022, the global economy was marked with recession fears, rising inflation and disruptions caused by ongoing geopolitical tensions, officially marking the end of the boom conditions of the year prior.
Dalian’s most-active soy oil contract fell 0.25%, while its palm oil contract dropped 1.08%. Soyoil prices on the Chicago Board of Trade were trading 0.46% lower.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Sept 1-25 rose between 18.6% and 20.9% from a month-ago figures, Reuters cited cargo surveyors saying.
Palm oil may retest a support at RM3,427 per tonne, a break below could open the way towards RM3,288-RM3,360 range.
Oil prices were mixed in early Asian trade on Wednesday as support from US production cuts caused by Hurricane Ian contended with crude storage builds and a strong US dollar.
Asian share markets slid as surging borrowing costs fed fears of a global recession, spooking investors into the arms of the safe-haven dollar and driving the Chinese yuan to record lows.