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Vegoils: Malaysian palm oil hits five-week low on lean demand

Reuters  |  JAKARTA 

(Reuters) - Malaysian futures extended losses to a five-week low on Tuesday, weighed down by the government's decision to maintain export tax for July and on lacklustre demand.

The benchmark contract for August delivery on the Bursa Derivatives Exchange fell 0.42 percent to 2,350 ringgit ($589.42) per tonne in morning trade, the lowest since May 4.

Trading volumes stood at 17,675 lots of 25 tonnes each.

Malaysia, the world's second-largest producer, kept its at 5 percent in July. The tax was resumed in May, after a four-month hiatus to increase demand and boost prices.

"It looks like the market is still reacting towards weak sentiment over sluggish exports," said of

Malaysia's exports of palm oil, an ingredient for soaps as well as chocolates, between June 1 and June 10 stood at 324,947 tonnes, down 20 percent from the same period a month earlier.

Palm track the performances of other edible oils, as they compete for a share in the global vegetable oils market.

On the Dalian Commodity Exchange, the September dropped as much as 0.35 percent, while the July on the rose slightly up to 0.03 percent.

(Reporting by Kanupriya Kapoor, Editing by Sherry Jacob-Phillips)

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

First Published: Tue, June 12 2018. 12:25 IST
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