Malaysian palm oil futures snapped two sessions of gains on Thursday, hitting their lowest in more than five months, dragged down by weaker-performing rival soyaoil on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange were down 2.3 percent at 2,659 ringgit ($601.72) a tonne by the close. The price had touched an intraday low of 2,656 ringgit, the weakest level since October 14. Palm is down 3.5 percent this week, in line for a second consecutive weekly decline. Traded volumes stood at 58,631 lots of 25 tonnes each at the close of trade.
"Palm declined because the soya complex is weak," one Kuala Lumpur-based futures trader said, referring to soyaoil on the Chicago Board of Trade.
In related edible oils, soyabean oil on CBOT slipped as much as 0.5 percent, while the September soyabean oil contract on the Dalian Commodity Exchange declined as much as 1.5 percent. The September contract for palm olein on the Dalian exchange was down 1.3 percent.
In the past few sessions palm prices have tracked related edible oils because they compete in the global vegetable oil market.
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