The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange dropped 1.59% to 3,715 ringgit ($844.70) a tonne. The contract has lost 2.08% so far this week. "Bursa Malaysia Derivatives CPO prices are following weak external markets like Dalian Commodity Exchange and crude oil," a Kuala Lumpur-based trader said, adding a firmer ringgit also put pressure on the rates.
Soyoil prices on the Chicago Board of Trade fell 0.92%. Dalian's most-active soyoil contract dropped 0.75%, while its palm oil contract was down 2.65%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Malaysian ringgit, the contract currency of trade, rose 0.27% against the dollar and made palm oil more expensive for foreign currency holders.
Meanwhile, exports of Malaysian palm oil products for April 1-10 fell between 16.2% and 35.6% from a month earlier, cargo surveyor data showed earlier this week. European Union palm oil imports for the 2022/23 season stood at 3.06 million tonnes by April 9 versus 3.98 million tonnes a year earlier. Palm oil may test support of 3,671-3,683 ringgit per tonne, a break below which could open the way towards the 3,577-3,613 ringgit range, said Reuters technical analyst Wang Tao. ($1 = 4.3980 ringgit) (Reporting by Fransiska Nangoy and Bernadette Christina; Editing by Subhranshu Sahu and Sohini Goswami)
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