Palm oil opens lower, set for fourth consecutive weekly loss
Malaysian palm oil futures opened lower on Friday, tracking weakness in Chicago soyoil, and set for a fourth consecutive week of losses.
KUALA LUMPUR, May 3 (Reuters) -Malaysian palm oil futures opened lower on Friday, tracking weakness in Chicago soyoil, and set for a fourth consecutive week of losses.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange slid 20 ringgit, or 0.52%, to 3,826 ringgit ($808.37) per metric ton during early trade.
The contract has so far lost 1.8% this week.
FUNDAMENTALS
* Soyoil prices on the Chicago Board of Trade BOc2 were down 0.79%. The Dalian Commodity Exchange is closed until May 5 for International Labour day holidays.
* Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
* Oil prices edged up in early trade on Friday on the prospect of OPEC+ continuing output cuts, but the crude benchmarks were headed for weekly losses on U.S. economic uncertainty and limited crude supply disruptions caused by the Israel-Hamas war. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* Palm oil imports in India, the world’s biggest importer of vegetable oils, jumped 41% in April from the previous month to the highest level in three months as easing prices prompted refiners to increase purchases, five dealers told Reuters.
* The ringgit MYR=, palm’s currency of trade, strengthened 0.4% against the dollar, making the commodity more expensive for buyers holding the foreign currency.
* Palm oil may rise into a range of 3,899 ringgit to 3,926 ringgit per metric ton, as it has managed to stabilise around support at 3,812 ringgit, Reuters technical analyst Wang Tao said. TECH/C
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