KUALA LUMPUR: Malaysian palm oil futures fell more than 1pc to a two-year low on Tuesday, hurt by weaker oils on China’s Dalian Commodity Exchange and a firmer ringgit.
The ringgit rose to its strongest levels against the dollar in two weeks on Tuesday, and was up 0.1 per cent at 4.0200 per dollar at 1040 GMT. A stronger ringgit, palm’s traded currency, makes the edible oil more expensive for foreign buyers.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.4pc at 2,259 ringgit ($561.94) a tonne at the close of trade. It earlier fell as much as 1.5pc to 2,234 ringgit, its lowest since July 15, 2016.
Trading volumes stood at 63,851 lots of 25 tonnes each on Tuesday evening.
June production fell 12.6pc to 1.33 million tonnes versus the previous month, according to data from industry regulator the Malaysian Palm Oil Board on Tuesday. Output is expected to rise in July and throughout the third quarter of the year, in line with seasonal trends.
Published in Dawn, July 11th, 2018