KUALA LUMPUR: Malaysian palm oil futures opened lower for the second straight session on Thursday after the Labour Day holiday, tracking weakness in Chicago soyoil.

Malaysian palm oil futures drift lower

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 9 ringgit, or 0.24%, at 3,809 ringgit ($798.70) per metric ton at 0236 GMT.

Fundamentals

  • Malaysian palm oil exports fell between 9% and 11.5% in April from a month earlier, cargo surveyors Intertek Testing Services and Amspec Agri said.

  • Indonesia, the world’s biggest palm oil exporter, maintained its palm oil export tax and levy unchanged for May at $52 per ton and $90 per ton, respectively.

  • Indonesia’s February palm oil shipments tumbled by a quarter as buyers switched to cheaper rival vegetable oils.

  • Soyoil prices on the Chicago Board of Trade were down 0.25%. The Dalian Commodity Exchange is closed until May 5 for International Labour day holidays.

  • Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

  • Palm oil FCPOc3 may test support at 3,787 ringgit per metric ton, a break below which could open the way towards the 3,744-3,760 ringgit range.

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