Malaysian palm oil price falls to more than 5 months low

Malaysian palm oil futures closed nearly 1 percent higher on Wednesday, posting their third straight session of gains, on the back of a weaker ringgit. (Filepic shows an oil palm plantation worker carrying an oil palm bunch to be loaded onto the back of a truck at a plantation near Sepang. - Reuters

KUALA LUMPUR: Malaysian palm oil futures fell to their lowest in more than five months on Monday in a third consecutive session of losses, weighed down by weaker performing related vegetable oils. 

Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange were down 2.1 percent at 2,695 ringgit ($611.25) a tonne at the close of trade, its biggest daily decline in two weeks.

The contract earlier fell to an intraday low of 2,685 ringgit, its weakest since Oct. 14.

Traded volumes stood at 45,445 lots of 25 tonnes each at the end of the trading day.

"The market is down on soyoil's drop on Friday, followed by the decline in Dalian today," said a futures trader from Kuala Lumpur, referring to soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange. 

Palm oil prices often take direction from related vegetable oils, including soyoil, as they compete for a share in the global vegetable oil market. 

Soybean oil on the Chicago Board of Trade was down 1 percent, while the September soybean oil contract on the Dalian Commodity Exchange dropped 2.9 percent. 

The September contract for palm olein on the Dalian Commodity Exchange dropped as much as 2.4 percent.

Palm has been range-bound since late-February based on mixed market signals, according to traders, as demand remains weak and output growth is still uncertain. Palm was down 1.7 percent on a weekly basis last week.

Shipments from Malaysia, the world's second largest producer after Indonesia, dipped during the March 1-25 period, cargo surveyor data showed. 

Palm oil exports were down 1.2-1.5 percent versus the corresponding period last month, according to Intertek Testing Services and Societe Generale de Surveillance.- Reuters

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