KUALA LUMPUR, July 25: Malaysian crude palm oil futures fell almost 2 per cent on Monday, extending losses from the previous week as export estimates for July remained soft amid a lack of direction from rival soyaoil. Economists say the ringgit is undervalued and the palm oil industry is bracing to cut prices if the currency appreciates.
The ringgit, on a managed float, had risen to 3.7480 per dollar on Monday, compared with 3.7780 in late Asian trade on Friday. Monday’s low for the October contract was 1,353 rimggit — just above 1,350 support. Other traded months settled down 6 to 28 ringgit.
Volume stood at 8,715 lots of 25 tons each, below Friday’s 10,085 lots but still heavier than the 6,000 lots seen on a typically busy day.
August soyaoil on the Chicago Board of Trade (CBOT) fell as much as 0.12 cent in Monday’s electronic trade, although it ended up 0.20 cent on Friday at 24.51 cents per lb.—Reuters
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