30.06.2018 (The Star Online) - KUALA LUMPUR: Malaysian palm oil futures fell in Friday evening trade, easing from a two-week high hit in the previous session, on pressure from a stronger ringgit.

The ringgit, palm's currency of trade, firmed by 0.05 percent to 4.0380 against the dollar. A stronger local currency typically makes palm oil more expensive for holders of foreign currencies.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.7 percent at 2,326 ringgit ($576.03) a tonne at the close of trade, snapping two days of gains.

It is up 1.8 percent for the week but remained 4.2 percent down on the month and has shed 7.1 percent since the start of the year.

Trading volumes stood at 38,254 lots of 25 tonnes each at the end of the trading day.

A stronger ringgit was weighing on palm today and the market was also taking profits after recent gains, said one Kuala Lumpur-based futures trader.

"Overall though, demand looks bad, hence sentiment is still bearish," he added.

Demand for palm oil has waned in recent weeks, with Malaysian shipments declining by 12.6 to 14.1 percent in the June 1-25 period versus the previous month, cargo surveyors reported.

Leading industry analyst Dorab Mistry said at a seminar in Jakarta on Thursday that a slowdown in Indian demand, because of higher import duties and Malaysia's reinstatement of a crude palm oil export tax, had contributed to recent price falls.

India, the world's top buyer of palm oil, is expected to import only 500,000 tonnes in June, down from the usual 800,000-850,000 tonne range, Mistry said.

In related oils, the Chicago December soybean oil contract edged up by 0.03 percent, while September soybean oil on China's Dalian Commodity Exchange gained 0.2 percent.

Meanwhile, the Dalian September palm oil contract rose by 1.1 percent.

Palm oil prices track the performance of other edible oils, competing in the global vegetable oils market. – Reuters