Malaysian palm oil futures prices continue to fall this morning and can not continue the backlash in yesterday's afternoon trade. Weak demand weighs on spot prices.
The August 18 date on the Bursa Malaysia derivatives exchange is 0.3% weaker at lunch time. Yesterday, trading ended 0.9% weaker than the day before, following the guidance of vegetable oil futures on other futures exchanges.
Traders expect lower palm oil exports for May, and there will be official statistics tomorrow. Independent research firm AmSpec Agri Malaysia has already reported that 1.2 million tonnes of palm oil was exported in May, 8.8% less than in April.
Also in Indonesia, the world's largest palm oil exporter, exports fell sharply in May, by 13.6% compared to April, according to the local palm oil trade association.
Soybean oil futures prices rose 0.2% on the CBoT, while September soybean oil futures on the Dalian Chinese derivatives exchange fell 0.4%.
Palm oil prices react directly to price movements of other vegetable oil contracts.
Text: HANSA Derivatives Trading GmbH /
