Palm oil closes lower as weaker Dalian rivals weigh
KUALA LUMPUR, May 27 (Reuters): Malaysian palm oil futures declined for a second day due to weak Dalian contracts and low trading volume. Despite higher exports, the benchmark August contract closed down 0.33% at 3,872 ringgit. May 1-25 export data showed a rise of 2.4% to 3.1%. Dalian’s soyoil contract fell 1.02%, while palm oil dropped 0.34%. Oil prices remained steady. The ringgit strengthened 0.32% against the dollar.
KUALA LUMPUR, May 27 (Reuters) -Malaysian palm oil futures fell on Monday for a second consecutive session as weakness in rival Dalian contracts and low trading volume weighed, though estimates of higher exports capped losses.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange closed down 13ringgit or 0.33%, at 3,872 ringgit ($824.71) per metric ton.
Favourable May 1-25 export data had seen Malaysian palm oil futures opening higher. However, prices gradually eased off mirroring rival Dalian oils’ movement, a Kuala Lumpur-based trader said.
“Low trading volume was also noted at 9,951 contracts,” the trader said.
Malaysian palm oil exports for May 1-25 rose between 2.4% and 3.1% from the month before, according to cargo surveyors.
Dalian’s most-active soyoil contract DBYcv1 fell 1.02%,while its palm oil contract DCPcv1 lost 0.34%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Oil prices were little changed on Monday, making marginal advances in muted trade owing to public holidays in Britain and the United States after a downbeat week characterised by the outlook for U.S. interest rates in the face of sticky inflation. O/R
By 0926 GMT, the benchmark Brent crude LCOc1 was up 21 cents to $82.33 per barrel.
Firmer crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit MYR=, palm’s currency of trade, strengthened 0.32%against the dollar, making the commodity more expensive for buyers holding the foreign currency.
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-oil-closes-lower-as-weaker-dalian-rivals-weigh-53847250
