Mumbai, 27 March (Commoditiescontrol):
Malaysian palm oil futures dropped for a second straight session on Wednesday, mirroring losses in rival edible oils, although a weaker ringgit limited losses.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives (BMD) Exchange dropped 90 ringgit or 2.12% to 4,146 ringgit ($876.90) a metric ton by the midday break.
Softer rival oils brought palm oil prices lower, a trader said.
Soft oils' discounts to crude palm oil has created exports worries for key producers Malaysia and Indonesia, he noted.
The soyoil contract on the Dalian Commodity Exchange fell 2.11%, while its palm oil contract lost 2.55%. Soyoil prices on the Chicago Board of Trade decreased 1.14%.
Soybean and corn futures declined amid plentiful supply, with the markets looking ahead to data on U.S. planting and grain stocks, due on Thursday, that could move prices.
Palm oil usually takes directions from the price movements in related oils as they compete for a share of the global vegetable oils market.
Crude oil prices dropped for a second day on Wednesday after a report that U.S. crude stockpiles surged and on signs that major producers were unlikely to change their output policy at a technical meeting next week. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
However, the Malaysian currency ringgit weakened 0.23% against the dollar, limiting losses. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Malaysia's financial markets will be closed on Thursday for a public holiday.
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