Malaysian palm oil futures fell more than 1 percent late on Tuesday, charting a third session of losses in four, as they tracked losses in related edible oils. Palm oil prices are affected by performances in other oils as they compete for a share in the global vegetable oils market.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 1.1 percent at 2,492 ringgit ($639.06) a tonne at the end of the trading day. It rose 1.4 percent in the previous session, its sharpest daily gain in nearly a month, but was down 0.4 percent on-month in a third consecutive month of losses.
Trading volumes stood at 37,189 lots of 25 tonnes each at the close of trade. "Overseas markets are all lower, so palm is under pressure but the fall is slow perhaps due to expectations of lower production," said a Kuala Lumpur-based trader, referring to related edible oils such as soyaoil on the US Chicago Board of Trade and China's Dalian Commodity Exchange.
Palm oil output is expected to decline in the first quarter of the year, in line with seasonal trend, reducing market supply and lending support to prices. Another trader said palm could trade cautiously ahead of cargo surveyor data release and national holidays in Malaysia.
Cargo surveyor data for Malaysia's January exports from Intertek Testing Services is scheduled for release on Wednesday after 0300 GMT, while data from Societe Generale de Surveillance will be released on Friday. Palm oil shipments from Malaysia during January 1-25 fell about 7 percent versus the corresponding period last month.
Malaysian markets will be closed on Wednesday and Thursday for national holidays, and will resume trading on Friday. In related edible oils, the March soyabean oil contract on the Chicago Board of Trade slipped as much as 0.5 percent, while the May soyabean oil on the Dalian Commodity Exchange dropped up to 1.5 percent. In other related edible oils, the Dalian May palm oil contract fell up to 0.9 percent.