SINGAPORE: Malaysian palm oil futures dipped on Wednesday, extending losses for a second consecutive session and paring earlier gains as a stronger Malaysian ringgit and weaker U.S. soybean oil weighed.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange dipped 3 ringgit, or 0.07%, to 4,063 ringgit ($893.56) by the end of trading. It fell 2.4% in the previous session.
Dalian’s most-active soyoil contract edged up 1.25%, while its palm oil contract climbed 1.72%. Soyoil prices on the Chicago Board of Trade (CBOT) were down 0.9%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The ringgit, palm’s currency of trade, rose 0.29% against the dollar, making the commodity more expensive for holders of foreign currency.
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After trading higher for most of the session, palm futures dipped toward the end of the trading day over weaker CBOT soybean oil, a stronger ringgit and an absence of fresh destination buying, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Malaysia’s palm oil exports during July 1-25 rose 10.8% from the month before, according to AmSpec Agri Malaysia. Meanwhile, data from cargo surveyor Intertek Testing Services showed a 17.8% rise in exports for the same period.
Indonesian authorities said on Monday the number of areas where wildfire could occur has doubled over the past week due to dry weather, raising concerns over widespread forest fires even before the country hits peak dry season.
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