NEW DELHI, July 27 (Commoditiescontrol) - Malaysian palm oil futures failed to continue their yesterday's upside momentum and moved lower during the first session of trade on Wednesday, weighed down by demand concerns as rival Indonesia increased efforts to boost exports.
The October benchmark crude palm oil contract on the Bursa Malaysia Derivatives Exchange (BMD), was down Ringgit 67or 1.75 percent at Ringgit 3,720 per tonne by the midday break, after moving in the range of Ringgit 3,880 and Ringgit 3,669 per tonne.
Palm oil prices will weaken further in the short term due to softer demand and "distress selling" by top producer Indonesia, commodities consultancy LMC International forecast on Tuesday.
Exports of Malaysian palm oil products for July 1-25 fell 2.2 percent from the same period in June, cargo surveyor Societe Generale de Surveillance said on Tuesday.
China has committed to importing an additional 1 million tonnes of Indonesian crude palm oil, the Indonesian state palace said in a statement on Tuesday.
Globally, Dalian's most-active soyoil contract fell 0.4 percent, while its palm oil contract slipped 2.9 percent. Soyoil prices on the Chicago Board of Trade (CBOT) were down 0.2 percent in electronic trade today.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
(By Commoditiescontrol Bureau: +91-22-40015505)
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