Malaysian palm oil price snaps winning streak, tracking weaker soyoil

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed down 0.3 percent at 2,554 ringgit ($594) a tonne. It had earlier risen to 2,575 ringgit, its highest since May 26.

KUALA LUMPUR, 8 July : Malaysian palm oil futures fell on Friday, ending a four-day winning streak, as soyoil’s weak performance on the Chicago Board of Trade (CBOT) weighed.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed down 0.3 percent at 2,554 ringgit ($594) a tonne. It had earlier risen to 2,575 ringgit, its highest since May 26.

Palm oil’s gains over the previous four days were prompted by forecasts of falling production ahead of industry regulator data release on July 10. The market gained 3.9 percent on the week.

A Reuters poll had forecast production to fall to 1.62 million tonnes in June, down 2.1 percent from the previous month.

However, end stocks are seen up 0.2 percent to 1.56 million tonnes, while exports are likely to dive 8.2 percent to 1.38 million tonnes on-month.

Traded volumes totalled 39,201 lots of 25 tonnes each on Friday.

“We are seeing some profit taking after the week-long rally on the back of softening soyoil and Dalian,” said a futures trader from Kuala Lumpur, referring to CBOT soyoil and related edible oils on  China’s Dalian Commodity Exchange.

Palm oil prices are affected by movements in related edible oils, as they compete for a share in the global edible oils market.

Soybean oil on the Chicago Board of Trade slipped 0.8 percent, while September soybean oil on the Dalian Commodity Exchange edged up 0.1 percent.

In other related oils, the September palm olein contract rose 0.3 percent.

 

Reuters