Palm oil declines more than 1% on weaker rivals
Malaysian palm oil futures drop over 1% on lower soyoil, crude prices. Dalian’s soyoil and palm oil contracts decline. U.S. soybean prices weaken amid Midwest planting.
SINGAPORE, April 25 (Reuters) -Malaysian palm oil futures fell more than 1% on Thursday amid lower soyoil and crude oil prices, marking its second consecutive session of decline.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange fell 52 ringgit, or 1.32% to 3,890 ringgit ($813.64) a metric ton as of 0236 GMT, erasing gains of 0.38% made during overnight trade.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 fell 0.55%, while its palm oil contract DCPcv1 lost 1.31%. Soyoil prices on the Chicago Board of Trade BOcv1 decreased 0.24%.
* Soybean prices weakened amid ongoing planting in the U.S. Midwest, pushing soyoil prices lower.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices eased in early trade on Thursday as concerns about a potential slowdown in the U.S. economy amid prospects for delayed interest rate cuts outweighed worries over the risk of expanding conflict in the Middle East. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Members of Malaysia’s Programme Advisory Committee discussed initiatives and methods for improving crop materials and efficient farm management to increase yields, Malaysia-based Bernama reported on Wednesday.
* The Malaysian ringgit MYR=, palm’s currency of trade, weakened 0.13% against the dollar.
* Palm oil may retest resistance at 4,012 ringgit per ton, as a bounce from Monday’s low of 3,880 ringgit looks incomplete, said Reuters technical analyst Wang Tao. TECH/C
MARKET NEWS
* Asian stocks fell on Thursday as disappointing earnings forecasts from Facebook parent Meta Platforms hammered tech shares, while the yen’s slump past 155 per dollar for the first time since 1990 raised the spectre of intervention from Tokyo. MKTS/GLOB
Source Link: https://www.xm.com/research/markets/allNews/reuters/palm-oil-declines-more-than-1-on-weaker-rivals-53821506
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