KUALA LUMPUR: Malaysian palm oil futures edged down on Monday, adding to losses chalked up in three straight weeks of declines, as weakness in soyoil and a firm ringgit weighed on the market, although news of an increase in exports limited the fall.

Cargo surveyor Intertek Testing Services reported that exports of Malaysian palm oil products from July 1 to 20 rose 7.8 per cent from a month before to 868,843 tonnes due to bigger shipments to Europe and China.

Exports to China nearly doubled compared to the same period in June. Another cargo surveyor showed exports for the same period rose 10.6pc. While the firm export data signalled robust demand for the tropical oil, weakness in soyoil markets commonly tracked by palm, as well as a strengthening local currency, held futures prices back.

The Malaysian ringgit rose 0.27pc to 3.1750 per dollar on Monday, making the feedstock more expensive for overseas investors and refiners.

“Our exports are OK, but the market is still very depressed over external factors, including the strength of the ringgit compared to last week,” said a trader with a foreign commodities brokerage in Kuala Lumpur.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange edged down 0.5pc to 2,297 ringgit ($724) per tonne, with prices trading from 2,288 to 2,304 ringgit.

Prices fell 1.6pc last week and have lost nearly 6pc so far in July. Total traded volume stood at only 22,467 lots of 25 tonnes, below the average 35,000 lots.

The US soyoil contract shed 0.3pc in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange slipped 0.4pc.—Reuters

Published in Dawn, July 22nd, 2014