AIRLINK 212.82 Increased By ▲ 3.27 (1.56%)
BOP 10.25 Decreased By ▼ -0.21 (-2.01%)
CNERGY 7.00 Decreased By ▼ -0.35 (-4.76%)
FCCL 33.47 Decreased By ▼ -0.92 (-2.68%)
FFL 17.64 Decreased By ▼ -0.41 (-2.27%)
FLYNG 21.82 Decreased By ▼ -1.10 (-4.8%)
HUBC 129.11 Decreased By ▼ -3.38 (-2.55%)
HUMNL 13.86 Decreased By ▼ -0.28 (-1.98%)
KEL 4.86 Decreased By ▼ -0.17 (-3.38%)
KOSM 6.93 Decreased By ▼ -0.14 (-1.98%)
MLCF 43.63 Decreased By ▼ -1.57 (-3.47%)
OGDC 212.95 Decreased By ▼ -5.43 (-2.49%)
PACE 7.22 Decreased By ▼ -0.36 (-4.75%)
PAEL 41.17 Decreased By ▼ -0.53 (-1.27%)
PIAHCLA 16.83 Decreased By ▼ -0.47 (-2.72%)
PIBTL 8.63 Increased By ▲ 0.08 (0.94%)
POWERPS 12.50 No Change ▼ 0.00 (0%)
PPL 183.03 Decreased By ▼ -6.00 (-3.17%)
PRL 39.63 Decreased By ▼ -2.70 (-6.38%)
PTC 24.73 Decreased By ▼ -0.44 (-1.75%)
SEARL 98.01 Decreased By ▼ -5.95 (-5.72%)
SILK 1.01 Decreased By ▼ -0.02 (-1.94%)
SSGC 41.73 Increased By ▲ 2.49 (6.35%)
SYM 18.86 Decreased By ▼ -0.30 (-1.57%)
TELE 9.00 Decreased By ▼ -0.24 (-2.6%)
TPLP 12.40 Decreased By ▼ -0.70 (-5.34%)
TRG 65.68 Decreased By ▼ -3.50 (-5.06%)
WAVESAPP 10.98 Increased By ▲ 0.26 (2.43%)
WTL 1.79 Increased By ▲ 0.08 (4.68%)
YOUW 4.03 Decreased By ▼ -0.11 (-2.66%)
BR100 11,866 Decreased By -213.1 (-1.76%)
BR30 35,697 Decreased By -905.3 (-2.47%)
KSE100 114,148 Decreased By -1904.2 (-1.64%)
KSE30 35,952 Decreased By -625.5 (-1.71%)

Malaysian palm oil futures dropped to their lowest level in nearly two weeks on Wednesday, hit by better-than-expected output forecasts and weak export demand. The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 1.2 percent, falling to 2,722 ringgit ($695) per tonne at the end of the trading day. Earlier in the session the contract hit 2,708 ringgit, its lowest since March 25.
Traded volumes were 48,993 lots of 25 tonnes each, above a 2015 daily average of 44,600 lots. "Some expect better production in April, and exports are not promising," said a trader based in East Malaysia, adding that the market expects March output to grow 8-10 percent month-on-month. A Reuters poll had forecast March output to rise 8 percent from a month ago, in line with seasonal trends, ahead of official data scheduled for release on Monday. But production is seen coming in at its weakest for the month since 2007 due to a crop-damaging El Nino.
Industry experts have forecast El Nino's dry weather effects would reduce global output by 2-3 million tonnes, pushing prices up to 3,000 ringgit per tonne by June. Technical charts show palm oil is facing resistance at 2,776 ringgit, according to Reuters analyst Wang Tao. But, palm oil shipments are expected to take a hit in April after Malaysia raised its crude palm oil export duty to 5 percent from zero, its first hike in nearly a year.
In competing vegetable oil markets, the May Chicago Board of Trade soyoil contract dropped 0.3 percent, while the September soybean oil contract on the Dalian Commodity Exchange lost 1.5 percent. The offer price for crude palm kernel oil fell to 5125.73 ringgit per tonne on Wednesday evening, according to price assessments by Thomson Reuters.

Copyright Reuters, 2016

Comments

Comments are closed.