KUALA LUMPUR: Malaysian palm oil futures reversed gains and fell for a fourth straight session on Tuesday as the strengthening ringgit eventually weighed on prices.
The February benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange dropped 0.3 percent to 2,275 ringgit ($536.30) a tonne by the close.
"The dollar is weaker and exports are expected to slow, so we're seeing some pressure on palm oil," one Kuala Lumpur-based trader said.
Traders are expecting data from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance for Nov. 1-25 -- due on Wednesday -- to show a slowdown or minimal rise in palm oil exports compared with the same period in October.
The ringgit gained 1.4 percent to 4.2420 against the dollar on Tuesday, its
strongest in nearly a month, as a rebound in crude oil prices eased concerns
over Malaysia's falling oil and gas revenues and as debt-ridden state fund 1MDB
agreed to sell $2.3 billion in assets.
Traded volume stood at 29,618 lots of 25 tonnes each at the end of the day.
In competing vegetable oil markets, the U.S. December soyoil contract
rose 0.3 percent, while the January soybean oil contract on the Dalian
Commodity Exchange gained 2.6 percent.
Palm, soy and crude oil prices at 1044 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC5 2136 -15.00 2125 2155 867
MY PALM OIL JAN6 2216 -7.00 2215 2242 2570
MY PALM OIL FEB6 2275 -7.00 2273 2303 15559
CHINA PALM OLEIN JAN6 4214 +114.00 4092 4240 816200
CHINA SOYOIL JAN6 5660 +144.00 5498 5694 473754
CBOT SOY OIL DEC5 27.97 -2.20 27.91 28.26 6732
INDIA PALM OIL NOV5 373.30 -2.20 372.30 377.80 429
INDIA SOYOIL DEC5 606.85 +6.10 601.20 607.70 38965
NYMEX CRUDE JAN6 42.09 +0.34 41.87 42.52 45844
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 4.2420 ringgit)
($1 = 66.3975 Indian rupees)
($1 = 6.3883 Chinese yuan)
- Reuters
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