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Malaysian palm oil futures fell on Friday, reversing earlier gains as they tracked weaker rival vegetable oils on the Dalian exchange, marking a third straight weekly loss and the lowest level in 28 weeks.
The benchmark palm oil contract for July delivery on Bursa Malaysia Derivatives fell 36 ringgit, or 0.9%, to close at 3,975 ringgit ($901.36) per tonne.
The contract lost 5.63% for the week.
"Futures appear to be consolidating and trading within a range of 4,000 to 4,080 ringgit, awaiting fresh market catalysts," said a Kuala Lumpur-based trader.
The most active soybean oil contract on the Dalian exchange fell 0.05%, while its palm oil contract slipped 0.12%. Meanwhile, soybean oil prices on the Chicago Board of Trade (CBOT) rose 0.67%.
Palm oil is influenced by movements in other vegetable oils as it competes for a share of the global vegetable oils market.
Palm Oil Falls for Fourth Session as Rising Output Weighs
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 on Tuesday.
Intertek Testing Services and AmSpec Agri Malaysia estimated that exports of Malaysian palm oil products during 1-15 April rose by between 13.6% and 17% compared with the previous month.
The Malaysian ringgit, in which the contract is traded, was little changed against the US dollar. A weaker ringgit makes the contract more attractive to buyers holding foreign currencies.
Source: Reuters