Mumbai, 25 April (Commoditiescontrol): BMD CPO futures fell further on Thursday at Malaysian exchange extending losses to a second consecutive session amid pressure by, weaker rival edible oils and higher production in key palm producing countries.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives (BMD) Exchange was down 92 ringgit, or 2.33%, at 3,850 ringgit ($805.27) a metric ton by the midday break, recovering slightly from an intraday low of 3,817 ringgit.
Rising production and losses in related vegetable oils futures on the Chinese exchanges are dragging down Malaysian palm, a market analyst said.
Dalian's most-active soyoil contract fell 1.2%, while its palm oil contract lost 2.45%. Soyoil prices on the Chicago Board of Trade shed 0.42%.
Weakness in soft oils, especially soyoil, has forced palm oil prices to ease, according to a local research analyst.
Soybean prices weakened amid ongoing planting in the U.S. Midwest, pushing soyoil prices lower.
Palm oil normally takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia's meteorological agency reduced issuances of Level 1 hot weather alerts to less than 20 areas on Wednesday evening. Hot weather negatively affects palm yields.
Meanwhile, members of Malaysia's Programme Advisory Committee discussed initiatives and methods to improve crop materials and efficient farm management to boost yields, Malaysia-based Bernama reported on Wednesday.
(By Commoditiescontrol Bureau; +91-9820130172)
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