SINGAPORE, May 16: Malaysian palm oil futures fell across the board on Monday because of weakness in soyoil and talk of a possible revaluation of Malaysia’s currency. May 1-15 export data were more or less within expectations but helped cushion the falls.
Cargo surveyor Societe Generale de Surveillance put exports of Malaysian palm products at 740,058 tons for May 1 to 15, up 35 per cent from the same period in April. Palm oil is sold in dollars, and a higher ringgit would mean less money for producers. Traders said buyers would put pressure on sellers to lower palm oil prices if the peg was revalued on the grounds that export prices would remain attractive for sellers.
In the physical crude palm oil market, May/June contracts saw bids at 1,405 ringgit a ton compared with offers at 1,410 in southern region of Malaysia. The May/June contract was offered at 1,405 ringgit against bids of 1,400 in the central region. Deals were done at 1,400 for May. —Reuters
