Malaysian palm oil futures declined further on Wednesday, hitting a near two-week low, as the ringgit remained at its strongest level for nearly three weeks.
The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.4% at 2,589 ringgit (US$637) per tonne at the end of the trading day.
The market fell for a third consecutive session, bringing its loss to 2.5% so far this week. It earlier reached an intraday low of 2,575 ringgit, its lowest since May 27. Traded volumes stood at 55,418 lots of 25 tonnes each on Wednesday evening, versus the 2015 average of 44,600.
"Palm is coming down on the back of a strengthening ringgit, so the market is on a profit-taking note," said a trader from Kuala Lumpur.
"It is a continuation of yesterday's sell off, today and tomorrow will see consolidation activity, as it awaits Malaysian Palm Oil Board (MPOB) figures."
Government body MPOB is scheduled to release May palm oil data on June 10 around noon. A Reuters poll ahead of the data pegged May end-stocks to fall 8.8% to 1.64 million tonnes from April, as the surge in exports outpaced a small rise in output growth.
Output is forecast to rise month-on-month by 3.9% to 1.35 million tonnes, compared with a 13.1% surge in exports due to Ramadan demand.
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