Mumbai, 18 April (Commoditiescontrol) : Palm oil prices settled down at Malaysian exchange on Thursday, pressured by expectations of rising output and slowing demand after the end of the Eid al-Fitr festive season.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives (BMD) Exchange closed down 23 ringgit or 0.57% at 3,989 ringgit ($834.34) a metric ton, marking its worst falling streak since early-December.
Exports from the world's second-largest producer had jumped 28.61% on-month to 1.32 million metric tons in March, on the back of higher demand during Ramadan and Eid al-Fitr celebrations.
Meanwhile, traders are expecting weak demand ahead as the festivities wrap up, and amid more attractive pricing against rival vegetable oils.
A Russian drone attack on Ukraine's Ivano-Frankivsk region targeted critical infrastructure on Thursday, with debris causing fires, the governor said.
Geopolitical tensions and missile attacks on Ukraine on port infrastructure will create logistical issues, which could trigger bullishness in the vegetable oils market, according to a trader.
Dalian's most-active soyoil contract dropped 0.08%, while its palm oil contract fell 0.9%. But, CBOT soyoil prices were up 0.5% today.
Malaysian palm oil futures usually follow the directions from price movements in related oils as they compete for a share of the global vegetable oils market.
Crude oil prices extended their losses after a 3% drop in the last session, as investors switched focus to signs that a wider conflict in the key Middle East could be avoided, as well as demand concerns.
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