Palm records its lowest weekly loss in 28 weeks, a third-weekly loss.
Malaysian palm oils futures reversed gains earlier, following rival oils in Dalian, and recorded a third consecutive weekly loss on Saturday, their lowest drop in 28 weeks.
The benchmark contract for palm oil delivery in July on the Bursa Derivatives exchange lost 36 ringgit (0.9%), to $3,975 ringgit (US$901.36) per metric ton, at the close.
Futures fell 5.63% in value this week.
A Kuala Lumpur based trader stated that "the futures appear to be consolidating, and trading between 4000 and 4080 ringgits while waiting for a new lead on the market."
Dalian's palm oil contract fell 0.12%, while the most active soyoil contract dropped 0.05%. Chicago Board of Trade Soyoil Prices rose by 0.67%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
A circular posted on the website of the Malaysian Palm Oil Board on Tuesday showed that Malaysia kept its 10% export tax on crude palm oil for May and reduced its reference price.
According to cargo surveyor Intertek Testing Services, and independent inspection company AmSpec Agri Malaysia, exports of Malaysian products containing palm oil for the period April 1-15 rose between 13.6% and 17% from a year ago.
The Malaysian Ringgit, which is the currency of contract trade, has largely been flat against the U.S. Dollar. The contract becomes more attractive to foreign currency holders when the ringgit is weaker. ($1 = 4.44100 ringgit). (Reporting and editing by Nivedita Bhattacharjee, Rashmia Aich, and Dewi Kurniawati)
(source: Reuters)
