KUALA LUMPUR: Malaysian palm oil futures reversed early gains on Tuesday, falling for the fifth consecutive day on concerns demand will be hit amid a surge in coronavirus infections.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed down 43 ringgit, or 1.84%, to 2,298 ringgit ($536.60) a tonne, its lowest closing since June 2.
Malaysia's palm oil exports in June rose 29% from the previous month, according to cargo surveyors.
The export numbers fell within market expectations, according to Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.
"Many in the trade are of the opinion that July export volume will trail June by at least 20%-30%," Paramalingam said.
Forecast of a spike in June production also hurt sentiment, he added.
"There are also rumors that the tariff for palm oil will be increased by $20-$25 in India," Paramalingam said. India is the world's biggest importer of edible oil.
Dalian's most-active soyoil contract rose 0.32%, while its palm oil contract gained 0.81%. Soyoil prices on the Chicago Board of Trade fell 0.49%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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