Malaysian benchmark palm oil futures fell to a near 10-week low on Thursday evening, as it tracked weaker performing rival oils in China. The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 1.6 percent to 2,519 ringgit per tonne in the evening. It hit an intraday low of 2,517 ringgit, its lowest levels since March 8.
Traded volumes stood at 56,751 lots of 25 tonnes each, versus a 2015 daily average of 44,600. The market likely tracked weaker vegetable oils in China, a Kuala Lumpur trader said, but export data scheduled for release on Friday could lift prices. "However, single digit export growth will not reduce end-stocks by much." Palm oil's performance has been impacted by the volatility of China's commodities market in recent weeks. The most actively traded September contract for palm olein and the September soybean oil contract on the Dalian Commodity Exchange both fell 2.4 percent on Thursday.
Traders also expect the start of Ramadan in early June to lift export demand. The festive month entails fasting and feasting for Muslims around the world, meaning higher demand for palm oil for cooking. Palm oil shipments from Malaysia grew between 14 percent to 16 percent in the first half of May from a month ago, cargo surveyor data showed on Monday. Export numbers for May 1 - 20 is scheduled for release on Friday. In other vegetable oils, the Chicago Board of Trade soyoil contract for August was down 1.1 percent.