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Palm declines on weaker related edible oils

Reuters  |  KUALA LUMPUR 

By Emily Chow

(Reuters) - Malaysian futures fell in early trade on Wednesday, in line for a third straight day of losses, on the back of weaker related edible oils on the and China's

The benchmark palm contract for June delivery on the Bursa Derivatives Exchange fell 0.4 percent to 2,423 ringgit ($626.10) a tonne at the midday break.

Trading volumes stood at 21,562 lots of 25 tonnes each.

"The market is still under correction and following weaker related oils," said a Kuala

Another said the market is taking a break from recent movements and would trade in the 2,400-2,450 ringgit range.

Palm rose to a five-week high last week after said it would extend tax exemptions on (CPO) exports to a fourth straight month in April, a move aimed at cutting inventories and propping up prices.

It fell over 1 percent in the previous session on bearish data from industry regulator, the Board.

Palm production rose 17.2 percent to 1.57 million tonnes in March from the previous month, while exports climbed 19.2 percent to 1.57 million tonnes, the data showed.

While stockpiles fell 6.2 percent to 2.32 million tonnes, the decline was smaller than market expectations. A poll had forecast March end-stocks in to decline 8.6 percent from February to 2.27 million tonnes.

In related oils, the Chicago Board of Trade's May contract dropped 0.4 percent.

Meanwhile, the May on China's fell 0.5 percent, while the Dalian May palm contract was down 0.7 percent.

Palm prices are impacted by movements in rival edible oils as they compete for a share in the global vegetable oils market.

Palm may break a support at 2,419 ringgit per tonne and fall more towards the next support at 2,392 ringgit, said Wang Tao, a

($1 = 3.8700 ringgit)

($1 = 65.0850 Indian rupees)

($1 = 6.2864 Chinese yuan)

(Reporting by Emily Chow; Editing by Sunil Nair)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 13:44 IST