KUALA LUMPUR: Malaysian palm oil futures declined on Friday to a new seven-week low, as palm exports slow due to stronger demand for rival soyoil.

The palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell 0.4 per cent to 2,593 ringgit ($664) per tonne at the close of trade. It declined for a third week this month, and has lost 5.6pc since the start of April.

Palm earlier hit a new seven-week low of 2,570 ringgit, its weakest since March 11. Traded volumes were 40,242 lots of 25 tonnes each, versus a 2015 daily average of 44,600.

“Since the palm and soy spread is narrow, people are taking soy. We have to see if demand comes in May, that will set the tone,” said a Kuala Lumpur-based trader, adding prices were unlikely to recover to 2,700 ringgit if demand remained weak. “We are expecting Ramazan demand but it is not showing up fully yet.”

Published in Dawn, April 30th, 2016