KUALA LUMPUR, Aug 2: Malaysian crude palm oil futures closed lower on Tuesday after the country’s recently de-pegged currency strengthened against the dollar. Talk of a higher-than-expected production of palm oil in July also weighed on the market, dealers said.
Five plantation firms surveyed by Reuters last week put production of palmoil in Malaysia, the world’s top producer, at 3.5 per cent higher in July than June due to a fresh ascent in yields. Palm oil is exported in dollars. But its futures prices, which also determine exports prices, are quoted in ringgit.
Other traded months settled down 10 to 16 ringgit.
Trade was brisk, at 5,709 lots of 25 tons each, up from Monday’s 3,485 lots.
In physical dealings of crude palm oil, August contract was offered at 1,350 ringgit a ton against bids of 1,345 ringgit in the southern and central regions of Malaysia.
Trades were reported at 1,365-1,350 ringgit in both regions. —Reuters
