KUALA LUMPUR: Malaysian palm oil finished lower on Tuesday, under pressure from concerns over Greece’s position in the euro zone and weakness in rival soybean oil, although losses were limited by expectations of lower production.
The September palm oil contract on the Bursa Malaysia Derivatives exchange dropped 1.1 per cent, or 25 ringgit, to 2,210 ringgit ($581.6) a tonne by close.
“Fundamentally, the market should move higher as we are expecting lower production data but soybean oil in China is down and the market is still suffering from the crisis in Greece,” one Kuala Lumpur-based trader said.
Chicago soybeans fell to a one-week low as dry weather in parts of the US Midwest after weeks of heavy rain improved crop prospects.
US soyoil fell 0.5pc, while the most active soybean oil contract on the Dalian Commodity Exchange slid 1pc.
Published in Dawn, July 8th, 2015
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