#palmoil
Malaysian palm oil futures extended losses on Monday, coming off last week's two-week high, as weakness in overseas soybean oil prices lured buyers away from the tropical oil.
Palm's rival soy fell sharply on Friday on the Chicago Board of Trade on expectations of a bumper US crop this fall. Dalian prices slipped a percent on the day and looked set to extend their losses this week.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange fell 2.2% to RM2,268 (US$560) per tonne at the close of trade, an intraday and near one-week low.
Traded volumes stood at 33,690 lots of 25 tonnes each on Monday evening, compared with the 2015 average of 44,600.
Palm oil plunged to a 10-month low earlier this month before recovering to a two-week high of RM2,368 last Thursday. It has lost 1.4% so far this month.
"The decline is due to soybean oil prices, which came off sharply on Friday," said a futures trader from Kuala Lumpur, adding that export demand did little to lift prices despite improving data from cargo surveyors.
"The pipeline is dry, so they are buying to have some oil in hand. It's not serious buying, but the figures are good in comparison to June," he said.
Reports from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance showed exports of Malaysian palm oil products from July 1-25 rose about 15% from the same time period last month, led by improved demand from Europe and China.
The Chicago soybean oil contract for December declined 1%, while the January soybean oil contract on the Dalian Commodity Exchange declined 1.9%.
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