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Palm slips on weaker related edible oils

Reuters  |  KUALA LUMPUR 

By Emily Chow

(Reuters) - Malaysian futures were lower in late trade on Wednesday, recording 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 0.1 percent to 2,431 ringgit ($627.68) a tonne at the end of the trading day.

Trading volumes stood at 36,862 lots of 25 tonnes each at the close of trade.

"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

Palm 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, May on China's fell 1 percent, while the Dalian May was down 0.6 percent.

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

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

($1 = 3.8730 ringgit)

($1 = 65.1900 Indian rupees)

($1 = 6.2847 Chinese yuan)

(Reporting by Emily Chow; Editing by Sunil Nair and David Evans)

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

First Published: Wed, April 11 2018. 16:46 IST
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