Palm extends its losses due to weak crude oil, a firm ringgit and sluggish imports

Malaysian palm oil futures continued to fall for the'second consecutive session' on Monday as a stronger ringgit, lower crude oil prices, and sluggish?exports dampened sentiment.

At the close, the benchmark palm oil contract on Bursa Derivatives Malaysia Exchange for December delivery fell 41 ringgit or 0.84% to 4,857 Ringgit ($1,191.90), a metric tonne. The contract fell 0.77% the previous session.

A Kuala Lumpur based trader stated that the market was under pressure?by lower crude oil prices and stronger ringgit. The decline in open interest on Friday also reflected a subdued level of market participation.

Oil prices fell to their lowest level in 11 days as investors hoped that?diplomatic progress would be made on the Iran War and hoped for partial recovery of Saudi Arabian shipments.

Palm oil is less attractive as a biodiesel feedstock due to its weaker crude.

Exports of Malaysian Palm Oil Products?for the period September 1-20 fell between 12.8% to 24.7% compared with a month ago, according to cargo surveyors.

Dalian's palm oil contract, which is the most active contract, fell by 0.92% while Dalian's?soyoil contract dropped by 0.11%. Chicago Board of Trade soyoil prices were down 0.45%.

As it vies to gain a piece of the global vegetable oil?market, palm oil monitors?the price movement of its rival edible oils.

The palm ringgit's currency, the?dollar, has strengthened by 0.02%, making it slightly more expensive for buyers who hold foreign currencies.

(source: Reuters)