JAKARTA: Malaysian palm oil futures dropped for a second session on Friday, heading to a first weekly drop in three weeks, weighed down by weakness in Dalian vegetable oils.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange lost 33 ringgit, or 0.84%, at 3,918 ringgit ($837.54) a metric ton in early trade.
Palm retreats on weaker Dalian vegetable oils
Fundamentals
Indian buyers curtailed purchases of palm oil for December and January shipments due to rising prices and refiners facing negative margins after making heavy imports in the past few months, industry officials said.
Malaysia maintained its December crude palm oil export duty at 8%, a circular on the Malaysian Palm Oil Board website showed.
Dalian’s most active soyoil contract fell 1.07%, while its palm oil contract plunged 1.53%.
Palm oil prices are affected by soyoil prices as they compete for a share in the global vegetable oil market.
Palm oil FCPOc3 may fall further to seek support around 3,917 ringit per metric ton, said Reuters technical analysts Wang Tao.
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