09.04.2019 (The Star Online) - KUALA LUMPUR: Malaysian palm oil futures retreated from a six-week top on Monday evening, falling over 1 percent to snap five sessions of gains, tracking weaker soybean oil prices on the U.S. Chicago Board of Trade and in a technical correction.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 1.1 percent at 2,200 ringgit ($537.24) a tonne at the close of trade.
In the previous session, palm climbed to 2,235 ringgit, its highest since Feb. 25.
"Soybean oil dropped this afternoon, and we saw a healthy correction," said a Kuala Lumpur-based futures trader.
Another trader said earlier in the day the market was bullish in the medium-term ahead of official data from the Malaysian Palm Oil Board, which is forecast to show a decline in March-end stocks.
Malaysia's palm oil stockpiles in March are likely to have dropped by 6.4 percent from February to 2.85 million tonnes, its lowest in five months, according to a Reuters survey, as a hefty jump in exports outpaced production gains.
The Malaysian Palm Oil Board is scheduled to release March data on Wednesday.
In other related oils, Chicago May soybean oil contract was down 0.7 percent, and the May soyoil contract on the Dalian Commodity Exchange rose 0.2 percent.
Meanwhile, the Dalian May palm oil contract gained 0.5 percent.
Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market. - Reuters
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