KUALA LUMPUR, June 27: Malaysian palm oil prices were down slightly after tracking fresh losses in rival US soyaoil. Volume on the futures market was light, with players split on direction as soyaoil turned soft in Monday’s electronic trade after strong gains at last week’s close. I think people want to see how Chicago performs tonight and get a clear direction, said a futures trader in Kuala Lumpur. That probably explains the volume.
A lower production could cut stocks of palm oil in the market, bolstering prices already bullish from chasing the rally in soyaoil.
SGS said exports for June 1 to 25 only fell 5.7 per cent when compared with its estimates for May 1 to 25. The market had been expecting a decline of up to 10 per cent.
Overall volume was 3,664 lots of 25 tons each. The market usually sees 6,000 lots or more on a busy day.
In physical trade of crude palm oil, the combined months of June and July saw bids closing at 1,435 ringgit a ton in Malaysia’s southern and central regions, against offers at 1,440. On Friday, bids versus offers stood at 1,442.50/1,447.50.—Reuters
