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Palm reverses gains, falls for third day on weak demand sentiment

Palm was down 2.9 percent on-week for a second weekly decline

Reuters 

Crude palm oil

Malaysian futures reversed early gains to close lower on Friday, charting a third straight day of losses on weaker demand outlook.

The benchmark contract for May delivery on the Bursa Malaysia Derivatives Exchange was down 0.4 percent at 2,126 ringgit ($519.93) a tonne at the end of the trading day.

Palm was down 2.9 percent on-week for a second weekly decline.

"Fundamentally the market is still bearish. We can't see where demand will come from," said a Kuala Lumpur-based trader.

Malaysian exports fell 14.5-15.3 percent for the full month of February, according to cargo surveyors.

A Reuters poll forecasts Malaysian February end-stocks to slide 1.7 percent to 2.95 million tonnes from the previous month, while production is expected to drop 8 percent to 1.6 million tonnes.

Exports are expected to drop 14 percent from January to 1.44 million ringgit.

Official data from industry regulator - Malaysian Palm Oil Board - is scheduled for release on Monday after 0430 GMT.

In other related oils, the Chicago May soybean oil contract was last down 0.3 percent.

The May soyoil contract on the Dalian Commodity Exchange declined 0.7 percent and the Dalian May palm oil contract dipped 0.4 percent.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.

First Published: Sat, September 07 2019. 02:28 IST
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