VEGOILS - Palm extends losses to third session due to profit-taking
The Malaysian palm futures market closed lower on Tuesday for the third session in a row, due to profit-taking, a weakening of sentiment, and traders waiting for export data.
The benchmark palm-oil contract for December delivery at Bursa Derivatives Exchange fell 39 ringgit or 0.87% to 4,460 Ringgit ($1,054.87) per metric ton.
A Kuala Lumpur based trader stated that the market was lower due to profit-taking, and a weakening sentiment.
The trader added that traders are also waiting for the October 1-15 export numbers to be released in order to get a better idea of the market's direction.
On Wednesday, cargo surveyors will release their estimates of exports.
Dalian's palm oil contract, which is the most active contract, fell by 0.49%. Chicago Board of Trade soyoil prices were down by 1.32%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
Oil prices dropped amid concerns about tensions between China and the U.S., two of the world's largest economies, as well as weaker fundamentals highlighted by the International Energy Agency.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit's trade currency has weakened by 0.07% against dollars, making it slightly cheaper for foreign buyers. ($1 = 4.2280 ringgit)
(source: Reuters)