KUALA LUMPUR: Malaysian palm oil futures charted a third session of loses in four on Thursday evening, tracking weakness in overnight US soyoil prices and on forecasts of slower-than-expected declines in output.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 0.6 per cent at 2,157 ringgit ($521.77) a tonne at the close of trade, after earlier rising to a three-day top of 2,179 ringgit.

“Front-month palm prices are under pressure on production outlook,” said a Kuala Lumpur-based trader, adding that this caused palm prices to fall in early trade. “The market is still sideways, waiting for fresh direction.”

Another trader said overnight declines in soyoil prices on the US Chicago Board of Trade weighed on palm oil prices, while a weaker ringgit limited the fall. “Due to soy’s prices, Malaysia’s export data had no effect,” he said. Malaysian palm oil exports rose between 1.4-8.9pc during April 1-25 versus the corresponding period last month, according to data from three cargo surveyors on Thursday.

Published in Dawn, April 26th, 2019