Palm falls for second consecutive session due to weak Chicago soyoil and firmer Ringgit

Malaysian palm futures dipped?lower? for the second session in a row?on Friday, due to a weaker Chicago soyoil and a stronger Ringgit, along with a?slightly higher? output expected in April.

The benchmark?palm-oil contract for July delivery at Bursa Malaysia's Derivatives exchange fell 41 ringgit or 0.9% to 4,538 Ringgit ($1,161.50), a metric tonne, as of the close.

Anilkumar bagani, head of commodity research at Sunvin Group in Mumbai, said that the price of crude palm oil fell after a prolonged liquidation.

He said that a stronger Malaysian currency, increased production in April, and palm oil's?discount on gas oil were also factors in the decline.

According to a survey conducted on Monday, Malaysian palm oil exports and inventories likely decreased in April. Production was predicted to have increased.

On May 11, the Malaysian Palm Oil Board will release its monthly data on supply and demand.

Dalian's soyoil contract with the highest volume?slid 1.08% while palm oil contracts?slid 1.51%. Chicago Board of Trade soyoil prices were down by?0.56%.

As palm oil competes for a piece of the global vegetable oils' market, it tracks the price movement of competing edible?oils.

The palm ringgit's trade currency, the dollar, has risen by 0.33%, increasing the price of the commodity for foreign currency buyers.

Analyst Dorab Mistry predicted that Malaysian palm oil will rise by 12%, to 5,200 ringgit (1,316 dollars) per ton, by mid-July. This is due to the higher energy prices resulting from the U.S./Israeli war against Iran, which are expected to increase biodiesel consumption and reduce supplies.

(source: Reuters)