Malaysian palm oil futures fell on Thursday, after data from a cargo surveyor showed exports grew more slowly than expected in January. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange dropped 0.2 percent to 2,299 ringgit ($561.55) a tonne.
Trading volumes stood at 24,751 lots of 25 tonnes each. "The export numbers released are below yesterday's market rumour. The ringgit's strength also pushed the market lower," a Kuala Lumpur-based trader said, adding that the coming long holiday weekend should prompt traders to cover short positions.
"That should limit any big sell-offs," the trader said. The Malaysian markets will be closed on Feb. 1 for a state holiday and Feb. 5-6 for the Lunar New Year celebrations. Cargo surveyor Intertek Testing Services said on Thursday exports of Malaysian palm oil products for January rose 14.7 percent, while independent inspection company AmSpec Agri Malaysia reported a 15.5 percent increase.
"Market is ranging here as external factors have softened," said another futures trader from Kuala Lumpur, referring to softer soyaoil prices. The Chicago March soyabean oil contract fell 0.4 percent. The May soyabean oil contract on the Dalian Commodity Exchange declined 0.5 percent, while the Dalian May palm oil contract fell 0.2 percent. Palm oil prices are affected by movements in soyaoil rates, as they compete for a share in the global vegetable oil market.