KUALA LUMPUR: Palm oil futures fell to their lowest in a month on Monday, due to lower demand as a supply crunch eased and as technical selling weighed on prices.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 1.5 per cent to 2,516 ringgit ($589.16) a tonne at the close of trade, its second consecutive session of declines. Earlier in the session, it had touched 2,509 ringgit, its lowest level since April 28.

Traded volumes stood at 36,845 lots of 25 tonnes each at Monday’ close of trade.

“Palm fell today on technical play, the market opened lower than Friday’s low, triggering some selling pressure,” said a futures trader from Kuala Lumpur. “Physical prices are also lower. Ramazan has started so demand should subside.”

Market supplies were tight in the last few weeks on the back of slower-than-expected output growth and as demand for the Muslim fasting month of Ramazan reduced stockpiles.

Published in Dawn, May 30th, 2017