Crude palm oil futures on Malaysia’s derivatives exchange fell Monday,
joining a selloff hitting oilseed and equities on fears ranging from Cyprus’s
bailout deal to a looming bumper soy crop in South America.
The new benchmark June contract at Bursa Malaysia Derivatives ended 1.3%
lower at 2,385 ringgit a metric ton after trading in a range of MYR2,383/ton to
MYR2,415/ton.
Palm oil, along with other major commodities, fell after euro-zone finance
ministers said there will be a levy on bank depositors in Cyprus to cut the cost
of a government bailout.
"The overall technical trend also remains pointed lower for palm oil," said a
trading executive at a commodities brokerage.
Demand concern and coming oilseed harvests in India and South America also
provided catalysts for declines in palm oil, the executive said.
Some analysts say the Malaysian government's decision to leave the April CPO
export tax rate at 4.5% could underpin prices and aid domestic refiners, CIMB
Research said.
Refiners "will retain their feedstock cost advantages in the form of lower
[domestic] CPO prices" and could further draw down palm oil stockpiles.
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