JAKARTA: Malaysian palm oil futures declined for a third session on Tuesday to its lowest closing in nearly two months, weighed down by prices of rival vegetable oils in the Dalian and Chicago markets and weak export data.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 58 ringgit, or 1.35%, to 4,247 ringgit a metric ton at closing, its lowest closing price since Jan. 27.
“The sentiments are bearish in palm oil right now as it has been forced to narrow down its premium over competing soy oil amidst the persistent absence of destination buying,” said Anilkumar Bagani, commodity research head at Mumbai-based vegetable oils brokerage Sunvin Group.
Malaysia’s palm oil exports for the March 1-25 period are estimated to drop by 8.47% month-on-month, according to inspection company Amspec Agri Malaysia, while cargo surveyor Intertek Testing Services estimated exports in the same period shrank by 8.1% on monthly basis. The most-active soyoil contract in the Dalian Commodity Exchange was down 0.86%, while its palm oil contract fell 2.07%.
Soyoil prices on the Chicago Board of Trade (CBOT) dropped 0.21%. Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
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