Malaysian palm oil futures traded below MYR 4,150 per tonne, slipping for the second session due to a decline in rival edible oils and a further drop in crude oil prices. The contracts are heading for the biggest one-day fall in nearly two months as bets of higher production lingered. Also, traders stayed cautious ahead of official PMIs data in key buyer China over the weekend. Limiting the bearish traction was a weaker ringgit and optimism of solid demand as the upcoming Eid-al Fitr festival approaches. On cargo surveyors’ data, Intertek Testing Services and AmSpec Agri noted shipments of Malaysian palm oil products for March 1-25 likely rose between 13.8% and 21.2% from the same period in February. In Indonesia, the top exporter is mulling changing the formula for the domestic market obligation, shifting it to be based on production instead of exports. Officials viewed the current policy as vulnerable when shipments fell. Markets in Malaysia will be closed on Thursday for a holiday.
