KUALA LUMPUR: Malaysian palm oil futures fell on Thursday, after a cargo surveyor data showed exports grew slower than expected in January.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange dropped 0.4 percent to 2,294 ringgit ($561.57) a tonne at the midday break.
Trading volumes stood at 10,013 lots of 25 tonnes each.
"The export numbers released are below yesterday's market rumour. The ringgit's strength also pushed the market lower," a Kuala Lumpur-based trader said, adding that the coming long weekend should prompt traders to cover short positions.
"That should limit any big sell-offs," the trader said.
Cargo surveyor Intertek Testing Services said on Thursday exports of Malaysian palm oil products for January rose 14.7 percent while independent inspection company AmSpec Agri Malaysia reported a 15.5 percent increase.
The ringgit strengthened by 0.5 percent to 4.0840 to the dollar.
The Malaysian markets will be closed on Feb. 1 for a state holiday and Feb. 5-6 for the Lunar New Year celebrations.
"Market is ranging here as external factors have softened," said another futures trader from Kuala Lumpur, referring to softer soyoil prices.
The Chicago March soybean oil contract fell 0.2 percent.
The May soybean oil contract on the Dalian Commodity Exchange declined 0.4 percent, while the Dalian May palm oil contract fell 0.2 percent.
Palm oil prices are affected by movements in soyoil rates, as they compete for a share in the global vegetable oil market.
Palm oil may slide into a range of 2,256-2,274 ringgit per tonne, as its correction from the Jan. 28 high of 2,333 ringgit looks incomplete, Wang Tao, a Reuters market analyst for commodities and energy technicals said.
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