Palm falls over 3pc on profit booking ahead of holiday, cheaper rivals weigh
- The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell to 3,942 ringgit ($961.46) per tonne, after closing 4.7% higher on Tuesday, its biggest jump in 11 months.
- On the Chicago Board of Trade, the soybean oil contract fell 3.6%, while the Dalian Commodity Exchange's soyoil contract declined 1%.
SINGAPORE: Malaysian palm oil futures fell 3.1% on Wednesday, giving up gains from the previous session, as traders booked profits ahead of a public holiday and as rival oils weakened.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell to 3,942 ringgit ($961.46) per tonne, after closing 4.7% higher on Tuesday, its biggest jump in 11 months.
"The fall is due to some profit-taking since tomorrow is a public holiday," a Kuala Lumpur-based trader told Reuters.
Further dragging down prices were cheaper rival oils in the United States and China, the trader said.
On the Chicago Board of Trade, the soybean oil contract fell 3.6%, while the Dalian Commodity Exchange's soyoil contract declined 1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Separately on Wednesday, Indonesia said that crude palm oil production in March had jumped 13.5% from a year ago, but end stocks were still lower.
The Bursa Malaysia Derivatives Exchange will be closed on Thursday, April 29, due to a public holiday.
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