Palm exports weaken on early harvesting expectations and low export data

Malaysian palm futures fell on Monday ahead of the Lunar New Year holidays, which begin Tuesday. They were pressured by a sluggish export data for early February and expectations of an accelerated harvest.

At the close, the benchmark May palm oil contract on Bursa Derivatives Exchange dropped 32 ringgit or 0.79% to 4,014 Ringgit ($1,029.76). The contract increased?0.22% during the previous session.

Anilkumar bagani, head of commodity research at Sunvin Group in Mumbai, said that palm oil prices were under pressure because market participants expected an early harvest ahead of Ramadan, along with weaker exports.

He said that "Destination?Markets are largely quiet, apart from some sporadic?Indian coverage."

Surveyors for Cargo estimated that exports of palm oil products from Malaysia between February 1-15 had fallen between 11,2% and 14,9% on a monthly basis.

The palm ringgit's currency has strengthened by 0.18% in relation to the dollar. This makes the commodity slightly less expensive for buyers who hold foreign currencies.

Investors weighed the implications of upcoming U.S. - Iran talks?aimed to de-escalate tensions? against a backdrop expected OPEC+ supply increases.

Palm oil is less appealing as a biodiesel feedstock due to weaker crude oil futures.

Dalian Commodity Exchange will be closed during the Lunar New Year holiday and resume trading on 24th February. Chicago Board of trade is also closed on a holiday.

The 'Bursa Derivatives exchange? will be closed for public holidays on the 17th and 18th of February. ($1 = 3.8980 ringgit)

(source: Reuters)