Palm oil opens lower ahead of cargo surveyor data
KUALA LUMPUR, July 15 (Reuters) – Malaysian palm oil futures fell 0.33% to 3,902 ringgit ($835.01) per metric ton on Monday, tracking declines in Dalian and Chicago oils. Last week, the contract dropped 3.1%. Dalian’s soyoil and palm oil contracts fell 0.84% and 0.85%, respectively, while Chicago’s soyoil prices dropped 2.04%. Weaker crude oil prices and a 0.13% decline in the ringgit further pressured palm oil prices.
KUALA LUMPUR, July 15 (Reuters) -Malaysian palm oil futures opened lower on Monday, mirroring weakness in rival Dalian and Chicago oils, while traders awaited export estimates from cargo surveyors for the July 1-15 period.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 13 ringgit, or 0.33%, to 3,902 ringgit ($835.01) a metric ton in early trade.
The contract fell 3.1% last week.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 fell 0.84%, while its palm oil contract DCPcv1 lost 0.85%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 2.04%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Cargo surveyors are expected to release their estimates of Malaysian palm oil exports for July 1-15 later on Monday.
* Oil prices fell for a second day as the dollar gained ground amid political uncertainty in the United States following an attack on U.S. presidential candidate Donald Trump while investors eyed the progress of talks for a Gaza ceasefire. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The ringgit MYR=, palm’s currency of trade, weakened 0.13% against the dollar, making the commodity less expensive for buyers holding the foreign currency.
* Palm oil may test support at 3,890 ringgit per metric ton, a break below which could open the way towards 3,850 ringgit, Reuters technical analyst Wang Tao said. TECH/C
Source Link: https://www.xm.com/research/markets/allNews/reuters/palm-oil-opens-lower-ahead-of-cargo-surveyor-data-53880176
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