28.09.2021 (www.brecorder.com) - SINGAPORE: Malaysian palm oil futures fell for a third straight session on Tuesday, tracking weakness in rival oils and on improving production, although higher crude prices limited losses.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 3 ringgit, or 0.1%, to 4,391 ringgit ($1,048.72) a tonne by midday.
It had fallen to as low as 4,318 ringgit earlier in the session.
"External markets are dragging (down prices)," a Kuala Lumpur-based trader told Reuters.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Dalian soybean and palm oil fell 1.7% and 1.5%, respectively, while Chicago Board of Trade soybean oil was down 0.6%.
Also dragging prices was rising output in Malaysia. The Southern Peninsular Palm Oil Millers' Association said on Monday production in their member states in Malaysia rose 0.5% during the Sept. 1-25 period from a month earlier.
However, crude oil prices rose, making palm a more attractive feedstock for biodiesel.
Oil markets extended their rally into a sixth session on Tuesday, amid continued concerns over tight supply at a time when demand is picking up with the easing of COVID-19 pandemic restrictions.