The Sun Daily (20/02/2018) - KUALA LUMPUR: Malaysian palm oil futures fell in early trade on Tuesday, as export growth slowed and sustained strength in the ringgit marred sentiment.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was down 0.68% at RM2,498 a tonne at noon, reversing Monday’s gains.

Palm had hit its lowest since Feb 9 on Monday, before rebounding to a gain at the day’s close.

Trading volumes stood at 10,627 lots of 25 tonnes each.
“Exports are slowing slightly, compared to earlier this month when the numbers were up nearly 15% in the first ten days of February,” said a Kuala Lumpur-based trader.

Exports of Malaysian palm oil products for the Feb 1-20 period rose 8.8% to 791,992 tonnes from the 727,958 tonnes shipped a month ago, cargo surveyor Intertek Testing Services said today.

Despite that, the trader said the Malaysian palm oil market was supported by tightness in Indonesia’s production and lower output expected in February due to a shorter working period.

The market’s attention will soon shift towards production figures due on Thursday, the trader added.

Another trader said the market could have been expecting positive exports figures, and sold on the news. “The ringgit is partly weighing on palm as well,” the trader added.

The ringgit, palm’s traded currency, retained its strength from Monday at 3.8890 against the dollar at noon. A stronger ringgit usually makes palm oil more expensive for holders of foreign currencies. – Reuters

Read more at http://www.thesundaily.my/news/2018/02/20/20022018-201335