Palm falls 1.3% as exports continue to fall

"Prices are down due to spillover weakness from external markets," a Kuala Lumpur-based trader told Reuters

  

SINGAPORE- Malaysian palm oil futures extended losses for a second session on Monday as exports in January plummeted and tracking declines in rival vegetable oils elsewhere.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed 43 ringgit lower, or 1.3%, to 3,239 ringgit on Monday.

It shed 0.2% on Friday and saw its second weekly loss on tepid exports data. 

The contract declined on Monday after cargo surveyor Intertek Testing Services reported that exports of Malaysian palm oil products for January 1-25 fell 36.1% to 851,730 tonnes from 1,333,543 tonnes shipped during December 1-25.

Prices were also earlier affected by cheaper rival oils on the Dalian Commodity Exchange and the Chicago Board of Trade (CBOT).

"Prices are down due to spillover weakness from external markets," a Kuala Lumpur-based trader told Reuters.

CBOT soybean futures extended losses on Monday as rains in South American growing regions eased concerns about tight global supplies. Soyoil prices on the CBOT, however, edged 0.1% higher. 

Meanwhile, Dalian's most-active soyoil contract fell 0.2%. Its palm oil contract reversed earlier losses and gained 0.4%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

A Reuters poll last week found that palm oil production in Malaysia and Indonesia is expected to recover and drive volatility in prices this year, which may reach nine-year highs. 

($1 = 4.0450 ringgit)

(Reporting by Fathin Ungku; Editing by Uttaresh.V and Shailesh Kuber) ((Fathin.ungku@thomsonreuters.com))

More From Commodities