[ad_1]
By Mei Mei Chu
KUALA LUMPUR, Feb 2 (Reuters) – Malaysian palm oil futures closed down for a second straight session on Thursday, weighed down by weakness in rival Dalian edible oils, low exports and a firmer ringgit.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange slid 65 ringgit, or 1.7%, to 3,750 ringgit ($883.81) a tonne.
The contract fell 8.6% in January, marking its second consecutive monthly drop.
A stronger ringgit, deep losses in soybean oil and the worst monthly exports in nearly two years weighed on the market, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Buying momentum is limited after traders price in subdued January production outlook, he added.
Exports of Malaysian palm oil products for January fell 26.4% to 1,113,292 tonnes from 1,512,468 tonnes shipped during December, cargo surveyor Societe Generale de Surveillance said on Tuesday.
India’s January palm oil imports fell 31% from a month ago as a narrowing discount to rival oils prompted refiners to increase purchases of soybean and sunflower oils, five dealers told Reuters.
Dalian’s most-active soyoil contract DBYcv1 fell 3.2%, while its palm oil contract DCPcv1 eased 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were slipped 0.03%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The ringgit MYR=, palm’s currency of trade, rose 0.47% against the dollar, making the commodity more expensive for holders of foreign currencies.
($1 = 4.2430 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu and Uttaresh.V)
((Meifong.chu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
[ad_2]
Source link
