Saturday, 27 August 2016
KUALA LUMPUR Malaysian palm oil futures posted a second straight session of losses on Friday, pulled down by weaker-performing rival oils, and charted a weekly loss following three weeks of gains.
Soybean futures on the Chicago Board of Trade are down on forecasts for above-average crop yields in the United States.
Palm prices are impacted by soy as they compete for a share in the global oilseeds market.
Benchmark palm oil futures for November on the Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,552 ringgit ($636) per tonne at the close of trade.
Traded volumes stood at 35,543 lots of 25 tonnes each at the end of the trading day, lower than the 2015 average of 44,600.
Palm recorded three sessions of falls this week, reaching a more than one-week low on Tuesday before finding support on strong exports. Palm is 0.7 percent lower this week.
The market is down on weaker soy, a Malaysian trader said. Another trader from Kuala Lumpur added that the market was also weighed down by lower-performing refined, bleached and deodorised (RBD) palm olien on China’s Dalian Commodity Exchange despite stronger Malaysian exports.
Palm oil shipments from Malaysia, the world’s second-largest producer after Indonesia, surged 29-31 percent between Aug. 1 and Aug. 25 from a month earlier. The rise stemmed from a surge in shipments to India and stronger Chinese exports, cargo surveyor data showed.
Palm oil seems to have stabilised around support at 2,522 ringgit per tonne and is expected to test resistance at 2,578 ringgit, according to Wang Tao, Reuters market analyst for commodities and energy technicals.
In competing vegetable oils, the Chicago Board of Trade soybean oil December contract rose 0.2 percent, while the January soybean oil contract on the Dalian Commodity Exchange dropped 1 percent. – Reuters
Source by: The Star Online