Malaysian palm oil futures rose to a two-week high in early trade on Tuesday, before falling back to end lower on speculation of weaker demand so far in May. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange dipped 0.1 percent to 2,381 ringgit ($603.09) a tonne at the close of trade, snapping two previous days of gains. Trading volume stood at 50,670 lots of 25 tonnes each on Tuesday evening.
Palm oil output for April is forecast to remain flat at 1.57 million tonnes, following a surge in March when output rose to its highest level for that month since 2000, according to a Reuters poll. In other related oils, the Chicago July soyabean oil contract was down 0.3 percent, while the September soyabean oil on China's Dalian Commodity Exchange fell 0.2 percent. The Dalian September palm oil contract was up 0.3 percent. Palm oil is impacted by movements in rival edible oils as they compete for a share in the global vegetable oils market.
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