MUMBAI (Commoditiescontrol) - Malaysian palm oil futures moved lower for the second consecutive day on Friday amid concerns over subdued export demand and rising production.
Market also remained cautious ahead of July 1-20 export data due tomorrow.
The October benchmark crude palm oil contract on the Bursa Malaysia Derivatives Exchange (BMD), was down Ringgit 9 at 1,974 by the close, after moving in the range of Ringgit 1,984 and Ringgit 1,965.
In other related oils, the CBOT soybean oil futures settled lower on Thursday on forecasts for cooler weather and export data showing China had cancelled soy purchases for the first time since April.
US Agriculture Department data showed the world’s top soybean importer cancelled purchases of 9,853 tonnes of US soy last week as the bilateral trade war remained unresolved. USDA export data also showed Russia and Mexico cancelled 171,000 and 32,000 tonnes of soybeans, respectively.
However, the CBOT soybean oil futures were trading higher in electronic trade on Friday amid renewed optimism over China-US trade talks.
US and Chinese officials spoke by telephone on Thursday as the world’s two largest economies seek to end a year-long trade war, with US Treasury Secretary Steven Mnuchin suggesting in-person talks could follow.
Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.
(By Commoditiescontrol Bureau)