KUALA LUMPUR: Malaysian palm oil futures fell from a near two-week high on Friday, reversing gains made earlier, as they were weighed down by weaker exports and expectations of rising production.
Palm was up earlier, tracking overnight soyoil on the Chicago Board of Trade (CBOT) and supported by a slightly weaker ringgit, palm's currency of trade, which typically makes the tropical oil cheaper for foreign currency holders.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.4 percent at 2,459 ringgit ($573.06) a tonne at the close. It earlier rose to 2,494 ringgit, its highest since June 19.
However, palm is down 7.1 percent in April-June from the preceding quarter, and has shed a fifth of its value since the start of the year.
Traded volumes stood at 50,504 lots of 25 tonnes each.
Traders said although the market had support earlier from firm soyoil on the CBOT, gains were not expected to last and the market fell as export demand remains weak and production is seen rising in coming weeks.
Palm oil shipments from Malaysia fell 8.9 percent for the full month of June from the previous month, according to data from cargo surveyor Intertek Testing Services on Friday.
Another cargo surveyor Societe Generale de Surveillance reported a 7.6 percent drop for the same time period.
Demand typically slows after the Muslim fasting month of Ramadan, which leads to higher palm oil usage for cooking during the Eid festivities.
Buyers typically stock up on palm oil supplies one to two months ahead of Ramadan.
Palm oil prices are also impacted by movements in soyoil, as the compete for a share in the global edible oils market. Soybean oil on the Chicago Board of Trade rose nearly 1 percent in its previous session, before easing 0.2 percent on Friday.
In other related oils, the September soybean oil on the Dalian Commodity Exchange fell 0.03 percent, while the September palm olein contract rose 1 percent.
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