KUALA LUMPUR: The price of crude palm oil (CPO) on Bursa Derivatives, the global benchmark, posted its biggest loss since May, further retreating from a three-year high amid declines in rival markets.
At 6pm, the third-month futures contract for CPO fell RM87, or 2.8% to RM3,005 a tonne.
The contract hit was traded at RM3,134 on Friday.
The drop in futures of soybean oil traded in Chicago and palm olein in Dalian, China, is pressuring prices to test the RM3,055 and RM3,035 support levels, Chandran Sinnasamy, a futures broker at CIMB told Bloomberg today.
Palm oil is traditionally traded at a discount to soybean oil.
LMC International chairman James Fry told Bloomberg that CPO prices will struggle to advance above RM3,300 in the next six months without higher petroleum prices and as it loses its competitive edge over rival vegetable oils.
He expects a significant drop in palm oil shipments from Southeast Asia once current export contracts at low prices expire.
Adding to the palm oil woes is India's decision to restrict imports of refined palm oil and palm olein to support its own domestic processing industry.
At 6pm, the third-month futures contract for CPO fell RM87, or 2.8% to RM3,005 a tonne.
The contract hit was traded at RM3,134 on Friday.
The drop in futures of soybean oil traded in Chicago and palm olein in Dalian, China, is pressuring prices to test the RM3,055 and RM3,035 support levels, Chandran Sinnasamy, a futures broker at CIMB told Bloomberg today.
Palm oil is traditionally traded at a discount to soybean oil.
LMC International chairman James Fry told Bloomberg that CPO prices will struggle to advance above RM3,300 in the next six months without higher petroleum prices and as it loses its competitive edge over rival vegetable oils.
He expects a significant drop in palm oil shipments from Southeast Asia once current export contracts at low prices expire.
Adding to the palm oil woes is India's decision to restrict imports of refined palm oil and palm olein to support its own domestic processing industry.
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