Malaysian palm oil futures on Tuesday hit their lowest in five weeks, and were headed for a fourth session of declines, as they tracked a subdued soyabean market after the Lunar New Year holidays. Benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange closed 1.3 percent lower at 3,033 ringgit ($684.96) a tonne. Earlier in the session, they touched 3,015 ringgit, their lowest since December 23, 2016.
The benchmark lost 2.6 percent in January. The market, which was closed since mid-day Friday for Lunar New Year celebrations, resumed trading on Tuesday.
Traded volumes stood at 44,006 lots of 25 tonnes each at Tuesday's close.
"Soya harvest in the Americas look like it will surpass target. As substitutes, soya immediately impacted CPO prices," Gregorious Gary, an analyst with Bahana Securities in Jakarta.
The Chicago Board of Trade most-active soyabean contract traded near its lowest in two weeks on Tuesday, after dropping 2.5 percent in the previous session.
In Indonesia, the world's top palm oil producer, the Indonesian Palm Oil Association (GAPKI) said it expects 35.5 million tonnes of palm oil output, up from 31.5 million last year.
There is no trading in China, with the Dalian Commodity Exchange closed for the Lunar New Year celebration until February 2.
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