KUALA LUMPUR: Malaysian palm oil futures ticked down on Tuesday, snapping a five-session rally as weak exports outweighed a declining ringgit and lower output estimates.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange fell 30 ringgit, or 0.8%, to 3,727 ringgit ($803.58) per metric tonne.
The market has been trading sideways since Monday as it is taking a breather after a strong rally last week in almost every global vegetable oil and oilseed, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Exports of Malaysian palm oil products for June 1-20 fell 16.8% from the same period in May, cargo surveyor Intertek Testing Services said. Another cargo surveyor, AmSpec Agri Malaysia said exports fell 12.9%.
The Southern Peninsula Palm Oil Millers’ Association estimated June 1-15 production in some parts of Malaysia will fall 4.6% from the month before amid hot and dry weather, according to traders and analysts.
Palm oil rises for fifth straight session on weather concerns
The ringgit, palm’s currency of trade, fell 0.28% against the dollar, making the commodity cheaper for buyers holding foreign currency.
Dalian’s most-active soyoil contract rose 0.5%, while its palm oil contract gained 0.5%. Soyoil prices on the Chicago Board of Trade were down 0.7%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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