JAKARTA: Malaysian palm oil futures closed down on Tuesday, declining for seven sessions straight, following weakness in rival oilseeds.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost 25 ringgit, or 0.67%, to 3,688 ringgit ($788.88) per metric ton on its closing.
A Kuala Lumpur-based trader said, palm is following weakness in soybean oil and Dalian.
Dalian’s most-active soyoil contract was down 0.43%, while its palm oil contract declined 1.74%. Soyoil prices on the Chicago Board of Trade were down 0.36%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm down on rising stocks, falling exports
Malaysia’s palm oil stocks at the end of August rose 22.5% from the previous month to 2.12 million tons, the highest in seven months, data from the Malaysian Palm Oil Board showed on Monday.
Crude palm oil production rose 8.9% to 1.75 million tons, while palm oil exports fell to 1.22 million tons.
Exports of Malaysian palm oil products for Sept. 1-10 fell 11.2% from a month earlier, according to cargo surveyor Intertek Testing Services.
Palm oil may test a resistance at 3,795 ringgit per metric ton, a break above which could lead to a gain to 3,859 ringgit, Reuters technical analyst Wang Tao said.
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