Malaysian palm oil weakened further on Thursday after export data from the world's second-largest producer and declines in competing bean oil markets weighed on prices, but a weaker ringgit provided some support. "The weak ringgit, that would encourage exports, but the first 20 days export figure came out and it's not what was expected, it was down," said a trader with a foreign commodities brockerage in Kuala Lumpar.
Exports of Malaysian palm oil products for November 1-20 fell 6.4 percent to 837,659 tonnes from 894,697 tonnes for October 1-20, cargo surveyor Intertek Testing Services said on Thursday. The benchmark February contract on the Bursa Malaysia Derivatives Exchange ended down 0.98 percent on Thursday at 2,223 ringgit ($660.62) per tonne. Total traded volume stood at 36,165 lots of 25 tonnes, just above the average 35,500 lots. Declines in competing bean oils also dragged palm prices lower.
"Now the e-board is trading down on the bean oil, and the e-board on the soy bean oil is down a bit. Coupled with the export figures from ITS, the market is under pressure," the trader told Reuters, referring to the markets' electronic trading boards. The US soyoil contract for December eased 0.43 percent on Thursday, while the most active May soybean oil contract on the Dalian Commodities Exchange edged down 0.95 percent. Technicals showed palm oil may drop to 2,213 ringgit per tonne, as indicated by its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao.
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