KUALA LUMPUR: Malaysian palm oil futures fell for a fourth straight session on Wednesday to hit their lowest in six weeks, weighed down by weak demand as competitive pricing of rival edible oils weighed.
Malaysian palm oil futures down
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 87 ringgit, or 2.14%, to 3,987 ringgit ($832.19) a metric ton by 0332 GMT, hitting its lowest since March 6.
Fundamentals
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An El Nino weather event has ended, Australian weather authorities said on Tuesday, adding that they were uncertain if a La Nina phenomenon would form later this year, as other forecasters have predicted.
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Oil prices eased in early trade as worries about global demand due to weak economic momentum in China and fading hopes for US interest rate cuts in the near term outweighed supply fears on heightened tensions in the Middle East.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. * Dalian’s most-active soyoil contract fell 1.2%, while its palm oil contract also eased 1.2%. Soyoil prices on the Chicago Board of Trade were down 0.07%.
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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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Palm oil may seek support at 4,039 ringgit per metric ton, and start a bounce, Reuters technical analyst Wang Tao said.
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