SINGAPORE: Malaysian palm oil futures fell for a fourth consecutive session on Monday, as cheaper rival oils and a stronger ringgit made the edible oil less attractive to foreign buyers.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed 1.4% lower at 2,336 ringgit ($545.54) a tonne on Monday.
"It's tracking a weak external market," a Kuala Lumpur-based trader told Reuters, adding that fears of a second wave of the COVID-19 pandemic has curbed demand across all edible oil markets.
Dalian's most-active soyaoil contract fell 3% and its palm oil contract fell 3.6%. Soyaoil prices on the Chicago Board of Trade last dropped 0.7%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Also weighing on the market, the ringgit firmed 0.2%, making Malaysian palm oil less attractive for holders of foreign currencies.
Indonesia's state oil company PT Pertamina announced on Monday that it will start producing 3,000 barrels per day of "green" diesel made from 100% palm oil starting in June next year.
But the production was too small and timeline too far ahead to affect prices, the Kuala Lumpur-based trader said.
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