KUALA LUMPUR, May 4: Malaysian crude palm oil futures fell 1.5pc on Wednesday after a sell-off sparked by weak prices of rival US soyail. Bursa Malaysia Derivatives’ benchmark third-month palm oil contract, July, ended down 22 ringgit at the day’s low of 1,411 ringgit a ton ($371.32). Its high was 1,435 ringgit.
Overall volume was 8,276 lots of 25 tons each — one of the highest in weeks. The market typically sees 6,000 lots or more in an active day.
The outlook is weak because there’s so little positive news, said one dealer. People are selling at the slightest excuse and soya’s giving us that excuse now.
With April’s official trade and crop data for palm oil not due until May 10, dealers said palm oil was likely to shadow movements in CBOT soyaoil for another week at least.
In Wednesday’s physical crude palm oil market, May and June contracts saw bids closing at 1,415 ringgit a ton, against offers at 1,425 ringgit. Only May was traded at 1,432.50-1,420 ringgit a ton in Malaysia’s south and 1,430-1,420 in the central region. —Reuters
