Palmetto falls due to weaker soyoil but still posts second monthly gain

Malaysian palm?futures closed down on Friday as soyoil weakness offset stronger exports. However, the contract still recorded its second monthly gain.

At the close, the benchmark 'palm oil contract' for?October delivery at Bursa Malaysia derivatives Exchange fell 41 ringgit or 0.88% to 4,642 Ringgit ($1,136.91).

The contract fell 1.69% last week, ending three weeks of rallying, but it still showed a monthly gain of?2.11%.

Crude palm futures fell, reflecting weakness on the'soyoil markets during Asian hours. However, losses were capped due to recent strength in 'exports. David Ng is a proprietary trader with Kuala Lumpur based trading firm Iceberg X Sdn Bhd.

Exports of Malaysian palm oil products rose between 12.1% and 195% in July, according to cargo surveyors.

Dalian's palm oil contract, which is the most active contract, fell by 0.84%. Chicago Board of Trade soyoil prices were down by 1.17%.

As palm oil competes to gain a share in the global vegetable oil market, it tracks the price movement of its rival edible oils.

The oil price fell by more than 1%, as more supplies passed through critical maritime chokepoints despite the?absence?of major advances in talks between Iran and the United States.

Weaker crude futures make palm a less appealing option as a biodiesel feedstock.

Palm's trade currency, the?ringgit (or dollar), has weakened by 0.2%, making it slightly cheaper for buyers who hold foreign currencies.

A trade ministry regulation revealed that Indonesia has lowered the price of its crude palm oil to $996.52 per ton in August, down from $1,000.90 per ton in July.

(source: Reuters)