JAKARTA: Malaysian palm oil futures fell and were headed for a second straight monthly drop on Wednesday, tracking weakness in rival vegetable oils, while the focus was also on the July export data from cargo surveyors.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost 17 ringgit, or 0.43%, to 3,898 ringgit ($846.29) a metric ton by midday break.
The contract is down 0.46% so far for the month.
“Listless rival oilseed movement in Asian trading hours weighed on Bursa Malaysia crude palm oil futures market sentiment,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract was up 0.37%, while its palm oil contract slid 0.15%. Soyoil prices on the Chicago Board of Trade were barely changed.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Malaysian ringgit, the contract currency of trade, strengthened 0.3%, adding pressure to the price, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
Stronger ringgit made palm oil less attractive for foreign currency holders.
Malaysian palm oil futures rise
Cargo surveyors are expected to publish their estimates on Malaysia’s July palm oil exports later in the day.
Meanwhile, European Union palm oil import by July 28 stood at 150,000 metric tons, down from 290,000 tons a year earlier, data published by the European Commission showed.
The world’s biggest palm oil exporter Indonesia raised its crude palm oil reference price for August to $820.11 per metric ton from $800.75 per ton in July, but will keep the export tax and export levy unchanged.
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