KUALA LUMPUR: Malaysian palm oil futures fell from a one-week high to close lower on Monday, as export data showing weaker shipments. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was 0.2 per cent lower at 2,188 ringgit ($526.72) a tonne at the close.

Earlier in the session, it had risen by as much 1.2pc to 2,220 ringgit, its highest since Oct 5, supported by gains in related edible oils, strength in crude oil prices and a bearish production outlook. Trading volumes stood at 55,235 lots of 25 tonnes each at the end of the trading day.

“Exports for October so far are bad. The high prices couldn’t be sustained,” said a Kuala Lumpur-based futures trader. “Palm was earlier up tracking US soyoil, but soyoil came down later.”

Malaysian palm oil exports for the first half of October fell 27.5pc versus the corresponding period last month, reported independent inspection company AmSpec Agri Malaysia on Monday. Another cargo surveyor Intertek Testing Services said shipments fell 32.8pc for the same period. Palm oil prices are affected by movements of other edible oils as they compete for a share in the global vegetable oils market.

The Chicago December soybean oil contract saw gains of 1.3pc on Friday after a government report forecast a smaller-than-expected US harvest. It was last down 0.1pc on Monday.

In other related oils, the January soybean oil contract on the Dalian Commodity Exchange rose 0.4pc, while the Dalian January palm oil contract climbed 0.9pc.

Published in Dawn, October 16th, 2018