KUALA LUMPUR (June 7): Malaysian palm oil futures dropped to their lowest in two weeks on Friday, hit by a stronger ringgit and market talk of lower exports.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was 1.4% lower at 2,027 ringgit (US$487.61) per tonne at the close.
The futures were down 2% this week.
"The market opened higher, tracking the crude oil rally, but ringgit strength has dampened sentiment," said a Kuala Lumpur-based trader.
There were also rumours of lower exports for early June, the trader said.
Strength in the ringgit, which is up 0.4% against the U.S dollar, makes palm less attractive for traders holding foreign currencies.
Earlier in the day, traders were also squaring their positions ahead of a stockpiles report next week, weighing on the market.
A Reuters palm oil survey of eight respondents showed that Malaysia's end-stocks in May are expected to fall 9.7% to 2.46 million tonnes.
In related oils, U.S. Chicago Board of Trade soyoil was down 0.4%.
The Dalian Commodity Exchange was closed on Friday for the Dragon Boat Festival.
Palm oil prices are affected by movements in soyoil, with which it competes for global market share.
Palm, soy and crude oil prices at 1035 GMT
|MY PALM OIL||JUN9||2000||-30.00||2000||2025||160|
|MY PALM OIL||JUL9||2017||-28.00||2012||2060||2277|
|MY PALM OIL||AUG9||2027||-29.00||2023||2075||16653|
|CHINA PALM OLEIN||SEP9||0||+0.00||0||0||0|
|CBOT SOY OIL||JUL9||27.64||-0.12||27.61||27.87||5482|
|INDIA PALM OIL||JUN9||507.50||-4.10||507.10||512.4||572|
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
(US$1 = 4.1560 ringgit)
(US$1 = 69.2525 Indian rupees)
(US$1 = 6.9057 Chinese yuan)