SINGAPORE: Malaysian palm oil futures reversed earlier gains to end lower for a second straight session on Monday, dragged by cheaper rivals and a stronger ringgit.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed 79 ringgit, or 1.8% lower, to 4,254 ringgit ($1,023.83) a tonne.
“It (the fall) is because of cheaper rivals,” Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group told Reuters.
Futures rose as much as 4,374 ringgit per tonne earlier in the session, as higher export taxes in top producer Indonesia boosted sales prospects.
Soybean oil on the Chicago Board of Trade fell 1.3%, while palm and soybean oil prices on the Dalian fell 0.7% and 0.9%, respectively.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The ringgit rose 0.8% against the dollar, making palm oil less attractive for holders of foreign currency.
Palm oil may fall into a range of 4,155 ringgit to 4,251 ringgit, as it failed to break a resistance at 4,405 ringgit per tonne, Reuters technicals analyst Wang Tao said earlier on Monday.