VEGOILS - Palm oil reverses gains earlier and posts a week decline
Malaysian palm futures reversed earlier gains and fell Thursday, tracking weakness in crude oil and profit-taking?actions before a long weekend.
The benchmark 'palm oil' contract for July delivery at the Bursa Derivatives Exchange fell 5 ringgit or 0.11% to 4,573 Ringgit ($1,151.89), a metric tonne, at the close.
Futures fell 0.52% in the week.
The market will close on May 1 for a holiday.
Dalian's palm oil contract, which is the most active contract in Dalian, gained 0.99%. Prices of soyoil on the Chicago Board of Trade fell by 0.58%.
As palm oil competes to gain a piece of the "global vegetable oils" market, it tracks the price changes of competing?edible oil?
AmSpec Agri Malaysia is an independent inspection company that provides independent reports on agricultural products. According to Intertek Testing Services cargo surveyor, the exports of palm oil from Malaysia in April were down 16.2% when compared with March.
The head of Indonesia's palm oil producers association stated that the country's crude palm output could drop by as much as 2 million metric tonnes this year, compared with 2025. This is due to the dry weather caused by El Nino and the high prices for fertilisers resulting from the Middle East war.
Indonesia's Trade Ministry published a regulation on Thursday that showed the crude palm oil price reference for May at $1,049.58 per metric ton, an increase from $989.63 in April.
The ringgit (the currency used to trade palms) has weakened by?0.43% versus the dollar. This makes the commodity more affordable for buyers who hold foreign currencies.
(source: Reuters)
