PAKISTAN:Following weakness in rival edible oils, Today Malaysian palm oil futures extended losses for a seventh session registering their largest weekly decline in more than four months.
On the Bursa Malaysia Derivatives Exchange, the benchmark palm oil contract for delivery in June decreased by 48 ringgit, or 1.34 percent, to 3,521 ringgit ($795.53) per tonne. The contract closed at its lowest level since October 4.
According to Analyst Abdul Hameed, Head of sales in manzoor trading co. lahore, Pakistan the edible oil market is remianed under pressure due to high selling of soya oil, SFO and rapeseed oil putting pressure on prices.
Also he said, The coming week seems to be highly volatile due to mixed fundamentals and strong rumors that India will increase the duty on import of edbile oil and also Russia going to halt the rapeseed oil export.
While the physical demand is not picking up but in future contracts seems to healthy as today “113211” lots sold today in KLC . howerver, palm oil bottom seen to soon and rapeseed slightly stable in rotradam. He said palm oil market may trade below 3500-3400 and it should be good buying opportunity for near term.
The palm oil contract was up 0.3 percent, while the soyoil contract was down 0.5 percent in Dalian. On the Chicago Board of Trade, soyoil prices were down 0.9 percent. As they compete for a share of the global market for vegetable oils, palm oil is affect by changes in the prices of related oils.
While A circular posted on the Malaysian Palm Oil Board website on Thursday revealed that Malaysia raised its reference price and maintained its 8 percent crude palm oil export tax for April.
Meanwhile, crude Oil costs fell on stresses over expected oversupply after U.S. Energy Secretary Jennifer Granholm said topping off the country’s Essential Petrol Hold might require quite a long while.