Mumbai, 27 March (Commoditiescontrol):
Malaysian palm oil futures settled down for a second straight session, mirroring losses in rival oils.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives(BMD) Exchange settled 101 ringgit or 2.38% down at 4,135 ringgit ($874.39) a metric ton, the lowest close since March 13.
Softer rival oils brought palm oil prices lower, a trader said.
Soft oils' discounts to crude palm oil have created export worries for key producers Malaysia and Indonesia, he added.
The soyoil contract on the Dalian Commodity Exchange fell 2.14%, while its palm oil contract lost 2.38%. Soyoil prices on the Chicago Board of Trade decreased 1.53%.
Soybean and corn futures dropped 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 takes directions from the price movements in related oils as they compete for a share of the global vegetable oils market.
Crude oil prices declined for a second day, falling more than 1% on Wednesday on surging U.S. stockpiles and signs that the OPEC+ producer group is unlikely to change its output policy at a technical meeting next week. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Malaysian currency ringgit weakened 0.28% against the dollar, limiting losses. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Malaysian benchmark crude palm oil prices are expected to weaken from second quarter this year on higher vegetable oil supply globally, Fitch Ratings said on Wednesday, noting that mild weather conditions and lower fertiliser costs will support output growth and sustain pressure on prices over the next 12-18 months.
Malaysia's financial markets will be closed on Thursday for a public holiday. Trading will resume Friday.
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