FCPO Strategy UPDATE: BUY once break up 2609 OR SELL above 2630, hit and run only.
(April 28): Malaysian palm oil futures fell for a third session this week, tracking poor performing rival vegetable oils and on bearish local sentiment, driven by rising output and weak export demand.
The palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 1.2% at 2,602 ringgit (US$669) per tonne at the end of trading, after earlier hitting a seven-week intraday low of 2,574 ringgit.
Traded volumes were 61,515 lots of 25 tonnes each, higher than the 2015 daily average of 44,600.
"Palm is down on external markets, (such as) Chicago Board of Trade soyoil and this morning Dalian RBD (refined, bleached and deodorized) palm olien was down sharply," said a trader based in Kuala Lumpur.
"As for local sentiment, we're seeing the weather improve. Production is up and exports are only marginally up."
The most actively-traded September contract for palm olein on the Dalian Commodity exchange declined 3.3% on Thursday, while the May Chicago Board of Trade soyoil contract lost 0.7%.
In other competing oils, the September soybean oil contract on the Dalian Commodity Exchange fell nearly 2%.
Improving weather conditions could reduce the impact of the crop-damaging El Nino phenomenon, which brings scorching heat across Southeast Asia.
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