Mumbai, 8 April (Commoditiescontrol): Palm prices dropped futher on Monday, extending fall for the third straight session after hitting a year high last week, as losses in rival soybean oil prompted profit booking.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives (BMD)Exchange fell 33 ringgit, or 0.76%, to 4,310 ringgit ($906.60) a metric ton by the midday break. The contract hit a high of 4,443 ringgit last week.
Falling stocks have lifted palm oil prices in recent weeks, but the rally has caused its premium over soybean and sunflower oil to rise, said a market observer.
"As a result, palm oil buyers are shifting to other oils. Prices need to come down to avoid a slowdown in demand and exports in the coming months," he said.
India's palm oil imports fell to their lowest level in 10 months in March as buyers substituted it with cheaper sunflower oil.
The market is now eagerly awaiting data on Malaysia's March exports, production and stock levels, a research analyst said.
The Malaysian Palm Oil Board (MPOB) is scheduled to release the data on April 15.
Soyoil prices on the Chicago Board of Trade dropped 0.57% during Asian hours.
Palm oil normally takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
Also, crude oil prices fell more than $1 a barrel on Monday, with Brent sliding under $90, as Middle East tensions eased after Israel withdrew more soldiers from southern Gaza.
(By Commoditiescontrol Bureau; +91-9820130172)
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