Malaysia BMD Palm Oil Fell More Than 2 Per Cent On Expectations Of Higher Output

- Sep 20, 2018-

Kuala Lumpur, sept 18 - Malaysian BMD crude palm oil futures fell more than 2 per cent on Tuesday to a one-month low on expectations of higher production.

Traders said a trade dispute between the United States and China and weakness in related cooking oil varieties also weighed on palm oil futures.

The BMD index of December palm oil contracts closed down 2.2 percent at 2,198 ringgit per tonne.At one point, the contract hit its lowest level since Aug. 15 at 2,195 ringgit per tonne.

Volume was 75,361 on Tuesday, with 25 tons each.

President trump on Monday announced a 10 percent tariff on about $200 billion of Chinese imports and threatened to impose an additional $267 billion in taxes on Chinese goods if China retaliated.

In response, a spokesman for China's ministry of commerce said China would have to fight back simultaneously to safeguard its legitimate rights and interests and the global free trade order.

Weaker commodity prices also weighed on palm oil, traders said.

The 1901 contract for soybean oil by big business closed down 0.5% on Tuesday.The main palm oil contract in 1901 fell 1.6%.

The CBOT's soybean oil futures contract fell 0.8% in September.