Palm oil slides on strong ringgit, posts second monthly fall

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FE Team | Published: August 01, 2024 00:48:23

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JAKARTA, July 31 (Reuters): Malaysian palm oil futures fell and posted a second straight monthly drop on Wednesday despite strong July export as a stronger ringgit weighed down the price.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost 6 ringgit, or 0.15 per cent, to 3,909 ringgit ($851.26) a metric ton at closing. The contract is down 0.18 per cent for the month.
Malaysian palm oil exports in July seen rising between 22.8 per cent and 30.91 per cent, cargo surveyor Amspec Agri and Intertek Testing Services said.
Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports stood at 1.48 million tons, according to LSEG, a 23.6 per cent increased compare to June exports.
"Despite good export data from Amspec and ITS for full July month, buying interest is slow as strong ringgit is capping the upside," a Kuala Lumpur-based trader said.
Malaysian ringgit, the contract's currency of trade, strengthened 0.61 per cent. A stronger ringgit makes palm oil less attractive for foreign currency holders.
Dalian's most-active soyoil contract DBYcv1 was up 0.18 per cent, while its palm oil contract DCPcv1 slid 0.69 per cent. Soyoil prices on the Chicago Board of Trade BOc2 gained 0.19 per cent.