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Palm slips on stronger ringgit, weaker related edible oils

TheEdge Fri, Jul 12, 2019 01:50pm - 4 months ago


KUALA LUMPUR (July 12): Malaysian palm oil futures fell on Friday, weighed down by a stronger ringgit, and weaker related edible oils on the US Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.6% at RM1,930 (US$469.47) per tonne at the midday break, heading for a fourth session of drop in five.

It has lost 1.5% so far this week in what would be its second weekly fall in three.

"Palm futures are lower mirroring weakness in competing vegetable oils," said a Kuala Lumpur-based futures trader.

"The continuous appreciation in the local currency could cap buying."

A stronger ringgit typically makes the edible oil more expensive for foreign buyers.

The ringgit strengthened against the dollar on Friday to a three-month top, and was last up 0.1% at 4.1110.

In other related oils, US soyoil futures on the CBOT were down 1%, while the September soyoil contract on Dalian fell 0.8%.

The Dalian September palm oil contract also eased 0.5%.

Palm oil prices are impacted by movements in related oils, as they compete for a share in the global vegetable oils market.








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