SINGAPORE: Malaysian palm oil slid 1.2 per cent on Wednesday, giving up some of this week’s gains due to pressure from improving weather in Southeast Asia and lower prices for rival commodity soybean oil.
Palm oil output could recover as rains have eased drought condition in oil palm plantations across Southeast Asia, traders said.
Demand for palm oil is likely to rebound as major importers India, Pakistan and the Middle East restock ahead of the Muslim holy month of Ramadan in late June, followed by Eid al-Fitr celebrations in July.
The benchmark July contract on the Bursa Malaysia Derivatives Exchange closed down 1.2pc at 2,650 ringgit ($812) a tonne. Traded volume stood at 34,061 lots of 25 tonnes each.
The US soyoil contract for May eased 0.4pc, while the most active soybean oil contract on the Dalian Commodities Exchange fell 0.3pc.
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