Palm opens lower on weaker crude oil prices, rival oils
KUALA LUMPUR, May 30 (Reuters) – Malaysian palm oil futures fell on Thursday, with the benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange sliding 31 ringgit, or 0.77%, to 4,003 ringgit ($849.53). Weaker crude prices and poor performances by Dalian and Chicago contracts pressured sentiment. Dalian’s most-active soyoil and palm oil contracts fell 0.15% and 0.28%, respectively, while soyoil prices on the Chicago Board of Trade dropped 0.78%. The ringgit weakened 0.21% against the dollar.
KUALA LUMPUR, May 30 (Reuters) -Malaysian palm oil futures fell on Thursday, as weaker crude prices and lacklustre performances by rival oils in Dalian and Chicago contracts weighed on sentiment.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange slid 31 ringgit, or 0.77%, to 4,003 ringgit ($849.53) during early trade.
FUNDAMENTALS
* Oil prices were down as the markets wait on the latest U.S. crude oil stockpiles data while resilient U.S. economic activity pointed to borrowing costs staying higher for longer in a potential blow to demand. O/R
* At 0046 GMT, Brent LCOc1 futures lost 9 cents, or 0.1%, to trade at $83.52 a barrel.
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Dalian’s most-active soyoil contract DBYcv1 fell 0.15%, while its palm oil contract DCPcv1 lost 0.28%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.78%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* The ringgit MYR=, palm’s currency of trade, weakened 0.21% against the dollar, making the commodity less expensive for buyers holding the foreign currency.
* Palm oil may retrace into a range of 3,949 ringgit to 3,969 ringgit per metric ton, as it faces strong resistance at 4,025 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks were a sea of red and bonds slid on bets global interest rates would stay higher for longer, as investors looked to key inflation readings at the end of the week for further clues on the future path of monetary policy. MKTS/GLOB
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-opens-lower-on-weaker-crude-oil-prices-rival-oils-53849610
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