KUALA LUMPUR: Malaysian palm oil futures eased on Tuesday, dragged down by uncertainty over output and concerns about lower exports to major customers China and India.

The benchmark palm oil contract, for April delivery, on the Bursa Malaysia Derivatives Exchange pared some losses to end down 12 ringgit, or 0.4pc, at 2,890 ringgit ($709.90). The contract earlier fell to an intraday low of 2,819 ringgit.

Palm oil gained 2.3pc in the previous session as bargain-buying fuelled its biggest daily jump since Jan 2.

“Lower Jan 1-20 exports, coupled with a rising production outlook, weighed down the market this morning,” said Sathia Varqa, owner and co-founder of Singapore-based Palm Oil Analytics.

Elsewhere, Dalian’s most-active soyoil contract fell 2.16pc, while its palm oil contract slid 2.6pc. Soyoil prices on the Chicago Board of Trade were 1pc lower.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Published in Dawn, January 22nd, 2020