Malaysian palm oil futures fell by nearly 1 percent on Tuesday evening, hitting their lowest in a week under pressure from weakness in related edible oils as traders took profits ahead of a long holiday weekend. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 0.9 percent to 2,713 ringgit ($636.03) by the close.
The contract had earlier touched 2,711 ringgit, its lowest since Aug. 21, en route to a third straight day of declines after climbing to a five-month high last week. Traded volumes were comparatively low at 34,605 lots of 25 tonnes each at the end of the trading day. "As the long holidays are coming, we're seeing some profit-taking, especially as Dalian and soyabean oil are also down," one Kuala Lumpur-based futures trader said, referring to soyaoil on the Chicago Board of Trade and China's Dalian Commodity Exchange.
The Bursa Malaysia Derivatives Exchange market will be closed for the public holidays on Thursday and Friday. The October soyabean oil contract on the Chicago Board of Trade fell 1 percent, while January soyabean oil on the Dalian Commodity Exchange also dropped as much as 1 percent.
In related vegetable oils, the January palm olein contract on the Dalian echange declined by 1.2 percent. Palm oil could drop to 2,687 ringgit a tonne after failing to break resistance at 2,759 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
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