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Malaysian palm oil futures extended losses for a third straight session on Wednesday, weighed down by weak performance in Dalian vegetable oil markets and expectations of higher output in the coming period.
The benchmark palm oil contract for July delivery on Bursa Malaysia Derivatives fell 36 ringgit, or 0.89%, to close at 4,007 ringgit per tonne ($912.98), its lowest closing level since 1 October.
"Palm oil futures are tracking weakness coming from external markets," said a Kuala Lumpur-based trader, adding that expectations of seasonally higher output were putting additional pressure on prices.
On the other hand, strong export data for 1-15 April lent support to the contract, the trader noted.
Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia estimated that Malaysia's exports of palm oil products for 1-15 April would rise by between 13.6% and 17% compared with the previous month.
In China, the most-active soybean oil contract on the Dalian Commodity Exchange fell 0.23%, while its palm oil contract lost 1.08%. On the Chicago Board of Trade (CBOT), soybean oil prices rose 0.38%.
Palm oil prices are influenced by movements in rival vegetable oils, as they compete for a share of the global vegetable oils market.
Separately, Malaysia kept its export tax on crude palm oil for May unchanged at 10% and lowered the reference price, according to a notice posted on the Malaysian Palm Oil Board's website.
Reuters technical analyst Wang Tao said palm oil prices could rebound towards a range of 4,119 to 4,176 ringgit per tonne, after the price stabilised around a support level of 4,026 ringgit.
Source: Reuters