Palm ends at 4-week low on soft August export data, firmer ringgit
- A stronger ringgit makes palm more expensive for holders of other currencies.
JAKARTA: Malaysian palm oil futures closed at their lowest in four weeks on Tuesday, dragged down by weak partial August exports data and a stronger ringgit.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange dropped 1.8% to 2,614 ringgit ($634.19) by the end of the session, marking its lowest close since July 28 and the third straight day of losses.
"Palm oil prices opened higher following bullish soy oil futures on CBOT overnight and in Asian hours," said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
However, stronger Malaysian ringgit and indications of a weaker August exports hit prices, he added.
Malaysian palm exports in Aug. 1-25 were seen down between 14% and 16%, according to inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services.
Meanwhile, the Malaysian ringgit rose for a second session on Tuesday, touching its strongest level since March at 4.165 ringgit per dollar.
A stronger ringgit makes palm more expensive for holders of other currencies.
Palm oil still targets the Aug. 12 intraday low of 2,606 ringgit per tonne, as a correction from the Aug. 4 high of 2,808 ringgit has not completed, Reuters technical analyst Wang Tao said.
Comments
Comments are closed.