JAKARTA: Malaysian palm oil futures fell for a second consecutive session on Tuesday, weighed down by expectations for improved production, while weaker Dalian vegetable oils and Chicago soyoil added pressure.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 63 ringgit, or 1.51%, to 4,107 ringgit ($931.29) a metric ton at closing, its lowest closing since Sept. 30.
“Moving forward, production is expected to pick up both locally and in Indonesia, thus the selling pressure that follows,” a Kuala Lumpur-based trader said, adding that export data was supportive of the price.
Exports of Malaysian palm oil products for April 1-15 estimated to rise by 17% from a month ago, said cargo surveyor Intertek Testing Services, while independent inspection company AmSpec Agri Malaysia estimated exports grew by 13.6%.
Palm ends lower on Chicago soyoil, concerns over economic headwind
Dalian’s most-active soyoil contract fell 0.23%, while its palm oil contract was down 0.39%.
Soyoil prices on the Chicago Board of Trade (CBOT) slipped 0.26%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Palm oil may retest support at 4,072 ringgit per metric ton, a break below could trigger a drop to 4,026 ringgit, Reuters technical analyst Wang Tao said.
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