JAKARTA: Malaysian palm oil futures closed more than 2percent lower on Thursday, extending losses to a second straight session, as sluggish export demand and weaker crude oil prices also pressured the market.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange lost 126 ringgit, or 2.75percent, to 4,457 ringgit (USD1,125.51) a metric ton at the close.
Cargo surveyors estimated that exports of Malaysian palm oil products for May 1 to May 20 fell between 13.9percent and 20.5percent from a month earlier. Dalian’s most-active soyoil contract fell 0.97percent, while its palm oil contract shed 2.02percent.
Soyoil prices on the Chicago Board of Trade were down 0.92percent. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices fell on Thursday, extending losses from the previous session as investors monitored peace talks between the United States and Iran, while economic activity in the euro zone shrank sharply. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit MYR=, palm’s currency of trade, strengthened 0.2percent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.