KUALA LUMPUR: Malaysian palm oil futures fell to their lowest in a week on Wednesday, their sharpest daily fall in a week, tracking related oils on the Chicago Board of Trade (CBOT) and China’s Dalian Commodity Exchange.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange fell 1 per cent to 2,442 ringgit ($569.76) a tonne at the close of trade, charting a second consecutive day of declines. It earlier fell to 2,430 ringgit, its lowest since June 14. Traded volumes stood at 50,738 lots of 25 tonnes.

“Palm fell in light of the plunge in soybean oil overnight,” said a futures trader in Kuala Lumpur, referring to the sharp 2.4pc decline in soya oil futures on the CBOT on Tuesday.

Related edible oils on Dalian also weighed on palm prices, which are seen declining further in July, another trader added.

“After the Eidul Fitr holidays, we should see production picking up, demand slowing down and stocks building up,” he said, referring to the Muslim festival which marks the end of the fasting month of Ramazan.

Both Eid and Ramazan, which fall in June this year, see higher uptake of palm oil for cooking purposes, as Muslims break day-long fasts with communal feasting.

Palm oil exports typically drop after Ramazan, as buyers stock up on palm oil supplies a month before festivities begin.

Shipments for the June 1-20 period fell 14-16pc versus the corresponding period last month, according to data from two cargo surveyors on Tuesday.

Published in Dawn, June 22nd, 2017