KUALA LUMPUR: Malaysian palm oil futures fell to a two-week low on Tuesday, in line for a second session of declines, tracking weaker soyoil on the U.S. Chicago Board of Trade amid slower-than-expected demand growth.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell 0.5 percent to 2,151 ringgit ($522.98) a tonne at the midday break.
It had earlier fallen to 2,139 ringgit, its weakest level since April 2.
"The market today is down as we are still lacking strong demand. It's not there, buyers are either well bought or are waiting for prices to come further down. Sustained demand is not there," said a physical trader.
Malaysian palm oil shipments for the first half of April rose 1.5-6.7 percent from the corresponding period last month, cargo surveyors reported on Monday.
Palm was also down mirroring overnight declines in U.S.
soybean oil futures, said another trader. The Chicago May soybean oil contract had fallen 0.5 percent on Monday, and was down 0.4 percent on Tuesday.
Palm oil may fall to 2,110 ringgit per tonne, as it has broken a support at 2,155 ringgit, according to Reuters market analyst for commodities and energy technicals Wang Tao.
In other related oils, the May soyoil contract on the Dalian Commodity Exchange lost 0.9 percent, and the Dalian May palm oil contract also declined 0.9 percent.
Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.
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