KUALA LUMPUR: Malaysian palm oil futures slipped on Monday, ahead of the Lunar New Year holidays that start from Tuesday, pressured by sluggish early February export data and expectations of an accelerated harvest.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange fell 32 ringgit, or 0.79%, to 4,014 ringgit ($1,029.76) a metric ton at the close. The contract rose 0.22% in the previous session.
Palm oil prices came under pressure as market participants expect an early harvest this month ahead of Ramadan along with weaker exports, said Anilkumar Bagani, commodity research head at Sunvin Group, a Mumbai-based brokerage.
“Destination markets are mostly quiet apart from some sporadic coverage from India,” he said.
Cargo surveyors estimated exports of Malaysian palm oil products for February 1-15 to have fallen between 11.2% and 14.9% month-on-month.
The ringgit, palm’s currency of trade, strengthened 0.18% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Oil prices were little changed, with investors weighing the market implications of upcoming U.S.-Iran talks aimed at de-escalating tensions against a backdrop of expected OPEC+ supply increases.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Dalian Commodity Exchange is closed for the Lunar New Year holidays and will resume trading on February 24. The Chicago Board of Trade is also closed for a holiday.
The Bursa Malaysia Derivatives Exchange will be closed on February 17 and 18 for a public holiday.
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