KUALA LUMPUR: Malaysian palm oil futures dipped on Tuesday evening, hitting their lowest in a week and tracking overnight losses in related edible oils such as soyoil on the US Chicago Board of Trade and China’s Dalian Commodity Exchange.

A weaker ringgit, however, may curb further declines in palm prices, traders said. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange dropped 0.5 per cent to 2,397 ringgit ($614.14) a tonne at the close of trade in a second consecutive day of declines.

Earlier in the session, the palm oil contract touched 2,391 ringgit, its weakest since April 18. Trading volumes stood at 30,698 lots of 25 tonnes each at the end of the trading day.

“Weakness in competing edible oils is wei­ghing on the market,” said a Kuala Lumpur-based futures trader. “Depreciation in the local currency, however, may provide support and cushion selling interest,” he said, referring to the Malaysian ringgit, palm’s currency of trade.

Published in Dawn, April 25th, 2018