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Malaysian palm oil futures for August delivery fell 2.13% to 4,041 ringgit a tonne, after dropping as much as 5% intraday. Traders expected May stockpiles and output to rise, with a Reuters survey pointing to an eight-month high in end-May stocks.
Market talk of an Indonesian export levy cut also weighed, though authorities said no decision had been made.
Higher expected output and stockpiles add supply pressure, and a possible Indonesian levy cut would lift export flows and could add to downward pressure. Traders are awaiting the MPOB data.
brecorder.comReutersJun 8, 2021After 400 past bearish policy events, PALMOIL moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
On June 8 palm fell on expectations of higher May output and stocks and on talk of an Indonesian levy cut, bearish supply-side factors early in the window.
On June 8 palm fell 2.1% on expectations of higher May output and stocks plus talk of an Indonesian levy cut, adding supply-side pressure within the window.
