Palm oil tracks Dalian rivals lower but set for weekly gain
JAKARTA, July 5 (Reuters) – Malaysian palm oil futures for September delivery fell 0.17% to 4,060 ringgit ($862.73) per metric ton but remained up 3.58% for the week. Dalian soyoil and palm oil contracts also dropped. Malaysia’s palm oil stocks rose 4.53% in June to 1.83 million tons, while output declined. Higher crude oil futures are bolstering palm oil’s appeal for biodiesel feedstock. Palm oil may fall to 3,951-3,989 ringgit.
JAKARTA, July 5 (Reuters) -Malaysian palm oil futures tracked rival Dalian oils lower on Friday, but were on track for a second consecutive weekly gain amid concerns about lower production.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange fell 7 ringgit, or 0.17%, to 4,060 ringgit $862.73) a metric ton in early trade. The contract has gained 3.58% so far in the week.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 dropped 0.62%, while its palm oil contract DCPcv1 lost 0.37%. The Chicago Board of Trade BOcv1 was closed for a holiday.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil inventories in Malaysia, the world’s second-biggest producer, rose for a third consecutive month in June as exports slowed, while output fell from the previous month, a Reuters survey showed.
* Malaysia’s palm oil stocks were seen at 1.83 million tons, up 4.53% from May-end, according to the median estimate of 12 traders, planters and analysts polled by Reuters.
* The Malaysian Palm Oil Board data is scheduled to be released on July 10.
* Oil prices were little changed but were on track for a fourth straight week of gains and holding near their highest levels since late April on hopes of strong summer fuel demand and some supply concerns.O/R
* Higher crude oil futures make palm a more attractive option for biodiesel feedstock.
* Palm oil may test support at 4,027 ringgit per metric ton, with a good chance of breaking below this level and falling towards a range of 3,951-3,989 ringgit, according to Reuters’ technical analyst Wang Tao.TECH/C
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