Malaysian palm oil futures declined for a fourth day on Wednesday, falling to their weakest levels since the start of the year on expectations of weaker demand, a stronger ringgit currency and weaker related edible oils. Gains in the ringgit, palm's currency of trade, usually make the edible oil more expensive for foreign buyers. The ringgit was last up 0.1 percent against the dollar at 4.0640 and are trading at its strongest levels in about six months.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange dropped 2.3 percent to 2,132 ringgit ($524.61) a tonne at the close of trade. It earlier fell to 2,129 ringgit, its lowest levels since Dec. 31. "Exports are seen to be down, the market is seeing long liquidation," said a Kuala Lumpur based trader.
Another trader said that palm was weighed down by weaker related edible oils. Cargo surveyors are scheduled to report Malaysia's export data for the full month of February after 0300 GMT on Thursday. In other related oils, the Chicago March soyabean oil contract was last down 0.7 percent.
The May soyaoil contract on the Dalian Commodity Exchange declined 0.5 percent and the Dalian May palm oil contract was down 1.2 percent. Palm oil prices are affected by movements in soyaoil, as they compete for a share in the global vegetable oil market. Palm oil may slide further into a range of 2,142-2,154 ringgit per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Comments
Comments are closed for this article.