Malaysian palm oil futures fell on Monday, retreating from a two-year high hit in the previous session, as exports of the commodity fell. However, costlier palm oil on the Dalian Commodities Exchange and a weaker ringgit put a floor under prices.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed to trade 0.6% lower to 2,744 ringgit ($658.03), off Friday's peak of 2,755 ringgit. Exports of Malaysian palm oil products for Nov. 1-25 fell 2.1% from the same period in October, cargo surveyor Intertek Testing Services said on Monday, while inspection services company AmSpec Malaysia reported a 5.2% fall.
The poor export data weighed on the prices, a Kuala Lumpur-based trader told Reuters. The contract had jumped to its highest since Nov. 16, 2017 in the previous session on prospects of lower production and stockpiles, as well as on stronger soyaoil on the Chicago Board of Trade (CBOT).
Limiting the downside on Monday was a weaker ringgit and costlier rival palm oil on the Dalian, two traders said. The currency slipped 0.2% against the dollar, making the edible oil cheaper for holders of foreign currencies.
Tracking Friday's gains in Malaysian palm oil futures, Dalian's January palm oil contract jumped 2.8%, while the soyaoil contract fell 0.1%. CBOT soyabean oil was last up 0.2%. Palm oil is affected by price movements in related oils as they compete for share in the global vegetable oils market.
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