Malaysian palm oil futures fell to their lowest in more than a week on Tuesday evening, charting a second consecutive session of losses on expectations that production will rise in the coming weeks. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 0.8 percent at 2,152 ringgit ($529.66) a tonne at the close of trade. It earlier fell to 2,148 ringgit, its lowest since July 13.
Trading volume stood at 53,348 lots of 25 tonnes each at the end of the trading day. "The market is down on concerns that production will rise," said a futures trader in Singapore, adding that the immediate focus is on export data scheduled for release on Wednesday.
A rise in palm oil output, which seasonally begins in the third quarter of the year, typically adds to inventory levels and weighs on prices. Increasing exports could help to reduce stockpiles. Malaysian shipment data from cargo surveyors for the July 1-25 period is scheduled for release after 0300 GMT on Wednesday.
Weakness in related edible oils is also dampening sentiment for palm, another futures trader said. Palm oil prices are usually affected by the performance of other edible oils that compete for a share of the global vegetable oils market. In other related oils, the Chicago December soyabean oil contract was last up 0.1 percent.
Palm oil could break a support at 2,149 ringgit a tonne and fall to the next support at 2,123 ringgit, said Wang Tao, Reuters market analyst for commodities and energy technicals.
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