Malaysian crude palm oil futures dropped nearly 1 per cent yesterday to hit a fresh five-week low as investors unwound more positions from a market that has fallen all week.
Palm was the worst performing vegetable oil this week, tumbling 7.3 per cent and outstripping US soyoil, which eased only 2.3 per cent. Traders say fears of slightly weaker exports and pressure from a possible record USsoy crop were factors.
The benchmark November contract on the Bursa Malaysia Derirvative Exchange settled down RM21 at RM2,197 a tonne, a level unseen since July 31.
“Sentiment is still weak, traders are very unsure but there is cargo surveyor data for September 1-10 to look at and the August palm oil stocks report from Malaysian Palm Oil Board,” the trader said, referring to data released next week on Thursday.
Cargo surveyors reported 1.3 million tonnes and above of exports last month, weakening from. 1.4 million shipped in July.
Traders say demand was still resilient and expected to cut into August closing stocks that traders say could range between 1.28-1.30 million tonnes.
But other dealers expect exports in the first ten days of September to weaken as top buyer China slows down purchases and the Middle East is stocked up for Ramadan, the Muslim month of fasting that began in late August. Source : Business Times]]>