The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed down 23 ringgit, or 0.6%, to 3,800 ringgit ($863.44) a tonne. For the week, palm has risen 1.04%, advancing for a second consecutive week.
Spot month was holding firm reflecting support on physical side, but far months were showing weakness because market sentiment is weak, a Kuala Lumpur-based trader said. Investors are awaiting Malaysian Palm Oil Board (MPOB) data due on Monday to determine further price direction.
A Reuters' survey ahead of MPOB data forecast Malaysia's
palm oil inventories tumbling to an eight-month low of 1.77
million tonnes at end-March, as exports soared ahead of the
month of Ramadan.
Dalian's most-active soyoil contract eased 1%,
while its palm oil contract fell 1.3%. The Chicago
Board of Trade was closed for a public holiday.
Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
Oil prices were little changed on Thursday but posted a
third weekly gain as markets weighed further production cuts
targeted by OPEC+ and falling U.S. oil inventories against fears
about the global economic outlook. Stronger crude futures make palm a more attractive option
for biodiesel feedstock.
($1 = 4.4010 ringgit)
(Reporting by Mei Mei Chu; Editing by Krishna Chandra Eluri)
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in and press enter, or double click between the brackets.
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils Malaysian palm oil exports CBOT soyoil futures CBOT soybean futures Indian solvent Dalian Commodity Exchange Dalian soyoil futures Dalian refined palm oil futures Zhengzhou rapeseed oil European edible oil prices/trades ))
