Malaysian crude palm oil futures fell to more than one-week lows on Tuesday along with other vegetable oil markets although prospects of lower production reined in losses. Traders were concerned palm oil demand might have slowed after a cargo surveyor reported Malaysian exports fell 16 percent for the first half of August.
The benchmark November crude palm oil futures on Bursa Malaysia Derivatives fell 1.2 percent, or 32 ringgit, to 2,646 ringgit ($832.1) per tonne after touching its lowest point since August 6 of 2,637 ringgit by midday. Traded volume more than doubled to 21,589 lots of 25 tonnes each. "Palm oil fell in unison with the broader market, however, a lack of millers selling in the cash market kept the underlying (sentiment) strong," said another trader in Kuala Lumpur.
"With a lack of aggressive selling, we anticipate to see some recovery by the next session." Traders said prospects of lower production due to heavier monsoon rains may support prices. The monsoon season, which normally runs from October until the end of the year, can bring floods to mainland Malaysia's key palm-oil producing state of Johor and Sabah on Borneo island and impede the transport of palm fruits to mills and refineries.
Other vegetable oils were mixed. US September soyaoil rose 0.8 percent in Asian hours, while the most-active May soyaoil on China's Dalian Commodity Exchange fell 0.9 percent. "China's agricultural commodities have been rising over the past weeks so it is undergoing a correction period now," said an analyst based in Shanghai. "In addition, weaker overnight soyaoil on Chicago Board of Trade also curbed gains of China's soyaoil."Indonesia palm oil markets is closed on Tuesday for a national holiday.
Comments
Comments are closed.