By Mei Mei Chu
KUALA LUMPUR, Aug 24 (Reuters) – Malaysian palm oil futures eased on Tuesday, ending two straight periods of positive factors on sluggish export shipments and trade estimates of a rise in August output.
The benchmark palm oil contract FCPOc3 for November supply on the Bursa Malaysia Derivatives Change closed down 16 ringgit, or 0.37%, to 4,300 ringgit ($1,017.27) a tonne.
Costs got here off on lengthy liquidation as Dalian costs rose sharply on Monday, a Kuala Lumpur-based dealer stated.
“Larger manufacturing expectations for August additionally weighed on (the market) and extra promoting may emerge if exports do not get better,” the dealer stated.
The Southern Peninsula Palm Oil Millers’ Affiliation forecast an 11.5% month-on-month rise in Aug. 1-20 manufacturing, merchants stated on Monday.
Malaysia’s exports throughout Aug. 1-20 fell 9.9% from the identical interval in July, cargo surveyor Societe Generale de Surveillance stated on Monday.
Investors predict August 1-25 shipments, that are anticipated to be introduced on Wednesday, to stay low.
The ringgit MYR=, palm’s foreign money of commerce, fell 0.07% in opposition to the greenback, making the commodity cheaper for holders of international foreign money.
Dalian’s most-active soyoil contract DBYcv1 rose 1.2%, whereas its palm oil contract DCPcv1 gained 1.9%. Soyoil costs on the Chicago Board of Commerce BOcv1 have been up 0.9%.
Palm oil is affected by value actions in associated oils as they compete for a share within the world vegetable oils market.
Refinitiv Agriculture Analysis stated in a notice on Monday that the contract may rise in direction of resistance at 4,360-4,380 ringgit a tonne this week, with assist at 4,050-4,070 ringgit a tonne, rebounding from final week’s sharp loss on bargain-buying.
($1 = 4.2270 ringgit)
(Reporting by Mei Mei Chu; enhancing by Subhranshu Sahu and Jason Neely)
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