Malaysian palm oil futures saw its sharpest daily decline in six weeks on Monday, reversing earlier gains after the market turned bearish ahead of export data from cargo surveyors. The data, due on Tuesday, is expected to show slowing growth in exports for the Jan. 1-15 period, compared to Jan. 1-10 when they surged by around 50 percent, said a Kuala Lumpur-based trader.
"It (preliminary data) suggests a slowdown in exports," she said.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed down 1.6 percent at 2,136 ringgit ($521) a tonne, its lowest level since Jan. 2. Trading volumes totalled 39,215 lots of 25 tonnes each.
Malaysian palm oil exports rose by between 46-52 percent between Jan. 1-10, according to cargo surveyor data, supported by better demand from Europe. Cargo surveyors are scheduled to release Jan. 1-15 export data for Malaysia after 0300 GMT on Tuesday.
In other related oils, the Chicago March soyabean oil contract edged down 0.4 percent, while the May soyabean oil contract on the Dalian Commodity Exchange rose 0.3 percent. Meanwhile, the Dalian January palm oil contract dropped 6 percent.