KUALA LUMPUR: Malaysian palm oil futures fell 1 per cent on Thursday, snapping a three-session rally on profit taking and slowing gains in other related edible oils.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed at 2,084 ringgit ($497.37) per tonne, having earlier fallen as much as 1.7pc to 2,070 ringgit. While the contract is still in positive territory this week, up 3.5pc so far, it is set for a fourth straight monthly decline.
“Palm futures are lower after earlier consecutive gains and on soybean oil,” said a futures trader in Kuala Lumpur, adding that profit taking also weighed on prices. The Chicago July soybean oil contract slipped after three sessions of gains and was last down 0.2pc. US grain prices eased although losses were capped by concerns over more rains further delaying US planting.
In other related oils, the September soyoil contract on the Dalian Commodity Exchange fell 0.6pc and the Dalian September palm oil contract eased 0.5pc. Palm oil prices are affected by movements in soyoil, with which it competes for global market share.
Published in Dawn, May 31st, 2019