Malaysian palm oil futures edged down to their lowest in more than a week on Thursday evening, weighed down by expectations of rising production. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 0.7 percent at 2,154 ringgit ($523.83) a tonne at the close of trade in its second session of declines.
The market earlier fell by up to 1 percent to 2,148 ringgit, its lowest level since April 2. The market dropped as much as 2 percent in the previous session as official data from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and production at higher levels than expected.
The MPOB data showed end-stocks declined 4.6 percent to 2.92 million tonnes from February, while output rose 8.3 percent to 1.67 million tonnes on the month. "Players are digesting April's supply and demand after Wednesday's selloff on higher-than-expected MPOB stocks," said a Kuala Lumpur-based trader.
"However, I think we are seeing a lower market on a higher April production outlook." Meanwhile, Malaysian palm oil exports during the April 1-10 period rose from the corresponding period last month by 6.2 percent and 12.6 percent, according to Amspec Agri Malaysia and Intertek Testing Services respectively.
Cargo surveyor Societe Generale de Surveillance reported a 27.6 percent gain in exports in the same time period. In other related oils, Chicago May soyabean oil contract was down 0.3 percent, and the May soyaoil contract on the Dalian Commodity Exchange slipped 0.4 percent.
Meanwhile, the Dalian May palm oil contract declined 0.6 percent. Palm oil prices are affected by movements in soyaoil, as they compete for a share in the global vegetable oil market.