By Mei Mei Chu

KUALA LUMPUR, Feb 27 (Reuters)Malaysian palm oil futures edged lower for a second consecutive session on Monday as traders booked profits, but robust exports and a weaker ringgit kept losses in check.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange slid 37 ringgit, or 0.88%, to 4,165 ringgit ($931.77) a tonne by the midday break, easing from a seven-week high hit last week.

Technical selling and profit-taking following a weaker tone in other markets dragged prices lower after a falling ringgit and steady exports failed to support prices, a Kuala Lumpur-based trader said.

Exports of Malaysian palm oil products for Feb. 1-25 rose between 15.3% and 25.4% from the same week in January, cargo surveyors said on Saturday.

The ringgit MYR=, palm’s currency of trade fell 0.8% against the dollar to its lowest since Nov. 30, making the commodity cheaper for holders of foreign currency.

Dalian’s most-active soyoil contract DBYcv1 slipped 0.3%, while its palm oil contract DCPcv1 fell 0.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.4%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Oil prices inched lower in volatile trade, as a stronger dollar and fears of a recession offset gains arising from Russia’s plans to deepen oil supply cuts. O/R

Weaker crude futures make palm a less attractive option for biodiesel feedstock.

Palm oil may test a support of 4,155 ringgit per tonne, a break below could open the way towards the 4,039-4,083 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.4700 ringgit)


(Reporting by Mei Mei Chu; Editing by Rashmi Aich and Savio D’Souza)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *