Malaysian palm oil futures prices are already declining in the third trading session this morning, reaching their three-week low. The demand for palm oil is described as listless and at the CBoT the prices of agricultural commodities are also declining.
The palm oil futures maturing in August 2018 on the Bursa Malaysia derivatives exchange (see chart) recorded 0.6% weaker to 2,403 ringgit / ton before the lunch break there. At the start of trading, the price even fell to 2.395 ringgit / ton, its lowest level since 8 May.
The trading volume was rather weak at lunch time with 9,665 lots per 25 tons.
A quiet demand spoils the mood. Overall, commodity markets are weak, which will probably continue to affect today's trading day, according to the expectation of a palm oil trader in Kuala Lumpur.
The development in the crude oil market also has an impact on palm oil prices, as palm oil serves as a raw material for the production of biodiesel.
In yesterday's trading session, US crude oil futures prices dropped more than USD / barrel as it is rumored that Saudi Arabia and Russia are promoting more crude oil and wanting to increase world supply.
Prices of soybean oil futures contracts on the CBoT are declining, but soybean oil futures on China's commodity exchange Dalian rose 1.3% this morning.
Palm oil prices are very much based on other competing edible oils on the world market.
Text: HANSA Futures Trading GmbH / / Graphic: Reuters
The palm oil futures maturing in August 2018 on the Bursa Malaysia derivatives exchange (see chart) recorded 0.6% weaker to 2,403 ringgit / ton before the lunch break there. At the start of trading, the price even fell to 2.395 ringgit / ton, its lowest level since 8 May.
The trading volume was rather weak at lunch time with 9,665 lots per 25 tons.
A quiet demand spoils the mood. Overall, commodity markets are weak, which will probably continue to affect today's trading day, according to the expectation of a palm oil trader in Kuala Lumpur.
The development in the crude oil market also has an impact on palm oil prices, as palm oil serves as a raw material for the production of biodiesel.
In yesterday's trading session, US crude oil futures prices dropped more than USD / barrel as it is rumored that Saudi Arabia and Russia are promoting more crude oil and wanting to increase world supply.
Prices of soybean oil futures contracts on the CBoT are declining, but soybean oil futures on China's commodity exchange Dalian rose 1.3% this morning.
Palm oil prices are very much based on other competing edible oils on the world market.
Text: HANSA Futures Trading GmbH / / Graphic: Reuters
