Malaysian palm oil price eases on lower China palm olein

15.07.2016

Malaysian palm oil futures eased on Thursday, tracking lower Chinese palm olein and softening U.S. soyoil prices.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange dipped 6 ringgit to 2,216 ringgit ($560.66) a tonne by the midday break.

The September contract for soybean oil, a substitute for palm oil, on the Dalian Commodity Exchange gained 0.43 percent, while the most actively traded September contract for palm olein slipped 0.24 percent.

"Markets will take cues from export data due tomorrow," a Kuala Lumpur based trader said.

Cargo surveyor Intertek Testing Services will release data on palm oil shipments on Friday.

"The top side is limited. With tapering demand and better production a downward bias market is expected," said Lingam Supramaniam, director with Pelindung Bestari at Port Klang Malaysia.

China is the world's second-largest palm oil consumer after India.


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