Palm oil hits two-week low in longest losing streak since June

KUALA LUMPUR: Malaysian palm oil futures hit a two-week low on Thursday, following sharp declines in rival oils and global equities, while concerns over rising output also dashed sentiment.

Palm is headed for its fourth straight session of losses, its longest losing streak since June.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slipped 58 ringgit, or 2.03%, to 2,803 ringgit ($672.50) a tonne during early trade, its lowest since Sept. 11.

As plantations in Indonesia and Malaysia enter the seasonal peak production period, one industry group predicted Malaysia's output during Sept. 1-20 would rise 5% from the previous month, according to traders.

FUNDAMENTALS
Malaysia's opposition leader Anwar Ibrahim said on Wednesday he has secured a "formidable" majority from lawmakers to oust the Prime Minister, heralding a fresh bout of political drama that could hurt market sentiment in the world's no. 2 palm producer.

Dalian's most-active soyoil contract fell 3.01%, while its palm oil contract slipped 3.49%. Soyoil prices on the Chicago Board of Trade were down 1.19%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may break a support at 2,856 ringgit per tonne, and fall towards 2,797 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian stocks opened lower on Thursday, tracking a sharply lower Wall Street session amid fresh concerns that the global economic recovery is running out of steam.