(April 25): Malaysian palm oil futures saw a second session of losses in trade on Monday, due to sluggish export demand and as traders forecast rising production in line with the seasonal trend.
The palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell 1.3% to reach 2,655 ringgit (US$681) per tonne in the evening, after earlier touching a one-week low of 2,653 ringgit.
Traded volumes were 61,436 lots of 25 tonnes each, compared with a 2015 daily average of 44,600.
"Over the next few months, production may be higher, that is why the market came down," said a trader based in East Malaysia, who doubts palm prices will reach the 3,000 ringgit mark as forecast by leading analysts.
"Exports are not catching up ... The market is unlikely to move higher and it will continue to trade lower due to weaker overall exports in April."
No comments:
Post a Comment