KUALA LUMPUR: Malaysian palm oil futures fell to a one-month low on Monday evening, recording a sixth straight day of losses on expectations of slowing demand growth and tracking losses in related edible oils.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 1.3 per cent to 2,369 ringgit ($609.55) a tonne at the end of the trading day. The market earlier fell to 2,368 ringgit, its lowest level since May 12. Trading volumes stood at 43,439 lots of 25 tonnes each at the close of trade.

“The market is expecting reducing exports for now,” said a futures trader from Kuala Lumpur, referring to Malaysian palm oil shipment data indicating slowing demand growth.

Exports of Malaysian palm oil products for April 1-15 rose 5 to 6pc from the corresponding period in March, inspection company AmSpec Agri Malaysia and cargo surveyor Societe Generale de Surveillance reported on Monday. Demand growth slowed after rising 25 to 32pc in exports from April 1-10.

Traders said palm oil was also tracking weakness in related edible oils, such as overnight US soyoil on the Chicago Board of Trade and China’s Dalian Commodity Exchange.

Published in Dawn, April 17th, 2018