KUALA LUMPUR: Malaysian palm oil futures fell on Tuesday in a retreat from the previous day’s more than three-month high, ending three sessions of gains, though losses were capped by global edible oil supply fears and a weak ringgit.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange lost 101 ringgit, or 2.53%, to close at 3,884 ringgit ($835.45) a metric ton.
Traders are awaiting industry forecasts of Malaysia’s June palm oil supply and demand ahead of Malaysian Palm Oil Board data next week to determine the next price direction.
A U.S soybean planting report, slower June production in Malaysia’s, geopolitical tensions and a weaker ringgit currency helped to limit losses, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari, adding that a lack of demand is causing some concern.
The condition of U.S. soybean crops deteriorated over the past week as rains failed to improve conditions, government data showed on Monday, adding to supply concerns after a surprise cut to the number of soy acres planted in the country.
Palm oil ends more than 5pc higher on supply worries
Soyoil prices on the Chicago Board of Trade rose 2% overnight, but the market was closed on Tuesday for a public holiday. The Dalian’s most active soyoil contract rose 0.8%, while its palm oil contract fell 0.3%.
Palm oil is affected by price movements in related oils that compete for a share in the global vegetable oils market.
In top buyer India, palm oil imports in June jumped 49% from the previous month to their highest in three months as buyers took advantage of prices that dipped to their lowest in 28 months, six dealers told Reuters.
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