JAKARTA: Malaysian palm oil futures declined for a second consecutive session on Friday, mirroring rival edible oils in Chicago and Dalian markets and on track to post their first weekly drop in five weeks.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 15 ringgit, or 0.36percent, at 4,191 ringgit (USD1,061.01) a metric ton by the midday break. The contract has lost 0.9percent for the week.
“Bursa Malaysia crude palm oil futures follow weaker external markets but weaker ringgit cushion some losses,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract was down 0.27percent, while its palm oil contract lost 0.64 percent. Soyoil prices on the Chicago Board of Trade declined 0.16percent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Malaysian ringgit, the contract currency of trade, eased 0.13percent against the US dollar on Friday, making the contract more attractive for foreign currency holders.
Malaysia’s palm oil inventories are set to end a 10-month rising streak in January, as exports jumped during a seasonal slowdown in production, a Reuters survey showed. Palm oil may retest a support at 4,169 ringgit per metric ton, a break below could open the way toward the 4,116-4,148 ringgit range, said Reuters technical analyst Wang Tao.
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