JAKARTA: Malaysian palm oil futures fell on Friday, snapping two consecutive sessions of gain, weighed down by weak rival vegetable oils prices and soft export data.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 24 ringgit, or 0.81%, to 3,927 ringgit ($833.23) a metric ton, as of 0244 GMT.
It lost 0.43% in overnight trade and has lost 0.5% so far this week. The contract is set to post a third consecutive weekly drop. Dalian’s most-active soyoil contract was down 0.53%, while its palm oil contract slid 0.29%. Soyoil prices on the Chicago Board of Trade were down 0.23%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Exports of Malaysian palm oil products for June 1-20 fell between 8.1% and 12.9% from May 1-20, independent inspection company AmSpec Agri Malaysia and Intertek Testing Services said. Meanwhile, cargo surveyor Societe Generale de Surveillance (SGS) has projected exports of Malaysian palm oil products for June 1-20 at 737,717 metric tons compared to 647,353 metric tons shipped from May 1-20, according to LSEG. Palm oil seems neutral in a narrow range of 3,927-3,965 ringgit per metric tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. Crude oil futures slid in early trade on Friday on the prospect of higher-for-longer interest rates in Asia and the United States, while falling US oil inventories kept prices from moving lower.
Comments
Comments are closed.