KUALA LUMPUR, April 1: Malaysian crude palm oil futures fell more than two per cent on Friday, weighed down by lower prices of rival soyaoil. Players also liquidated positions after the market dipped below the 1,450 ringgit a tonne support level. Bursa Malaysia Derivatives’ benchmark third-month contract, June, ended down 2.2 per cent, or 32 ringgit, at 1,429 ringgit ($376.05) a ton, just one ringgit off the day’s low. Volume was a heavy 7,155 lots of 25 tons each.
Soyaoil and palm oil compete for similar export destinations and their prices often move in step. Soyaoil futures on the Chicago Board of Trade closed 0.30 to 0.75 cent per lb lower on Thursday, with May down 0.58 cent at 22.90 cents per lb.
In the physical crude palm oil market, the April contract saw bids at 1,430 ringgit a ton, against offers at 1,440 in Malaysia’s southern region. The same contract in the central region saw bids/offers at 1,430/1,435 ringgit. Trades were reported at 1,435 ringgit in the south and 1,430 in the central region. —Reuters
