KUALA LUMPUR: Malaysian palm oil futures closed lower on Tuesday, ending a two-session rise weighed by lacklustre demand and as traders squared up positions ahead of a public holiday.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost 36 ringgit, or 0.92%, to 3,894 ringgit ($857.71) a metric ton.
The contract traded lower, tracking a fall in overnight Chicago soyoil prices and on a lack of fresh buying support from destination markets due to well-stocked inventories and narrow import margins, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
A deal allowing the safe Black Sea export of Ukraine’s grain for the past year expired on Monday after Russia quit and warned it could not guarantee the safety of ships in a move the United Nations said would “strike a blow to people in need everywhere.” Weekly condition ratings for the US soybean and spring wheat crops improved more than expected in the past week following rains in portions of the Midwest and Plains, US government data showed on Monday. Soyoil prices on the Chicago Board of Trade were up 0.4%. Dalian’s most-active soyoil contract rose 0.02%, while its palm oil contract gained 0.4%.
Bursa Malaysia will be closed on Wednesday for a public holiday.
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