JAKARTA: Malaysian palm oil futures fell for a second straight session on Monday, tracking weakness in rival vegetable oils and a stronger ringgit, as market participants awaited new leads.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange dropped 32 ringgit or 0.83%, to 3,842 ringgit ($824.46) by the midday break.
The contract had posted a second consecutive weekly decline last week, falling 0.49%. “Today’s crude palm oil futures mainly follow Chicago Board of Trade soyoil weakness, supported by our good export data while waiting for new leads in December,” a Kuala Lumpur-based trader said. Dalian’s most-active soyoil contract fell 0.51%, while its palm oil contract was down 0.36%. Soyoil prices on the Chicago Board of Trade were up 0.21%.
Palm oil is affected by price movements in related oils as they compete for a share of the global market. The Malaysian ringgit, palm’s currency of trade, strengthened 0.24% against the dollar at 0510 GMT.
A stronger ringgit makes palm oil less attractive for foreign currency holders. Exports of Malaysian palm oil products in November were estimated to be up between 2% and 11% from the previous month, data from surveyors Intertek Testing Services and AmSpec Agri Malaysia showed. Palm oil may retest support of 3,825 ringgit per metric ton, as suggested by its wave pattern and a projection analysis, Reuters technical analyst Wang Tao said.
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