VEGOILS-Palm oil drops tracking weaker rivals in Dalian
JAKARTA, July 24 (Reuters) – Malaysian palm oil futures fell on Monday, extending declines in the early trade, dragged by weaker vegetable oils in the Dalian Commodity Exchange.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange lost 48 ringgit, or 1.19%, to 3,987 ringgit ($871.28) a metric ton by the midday break.
“We’re down tracking Dalian weakness but positive exports will support the market later. Currently there seem to be support coming in for CBOT soyoil,” a Kuala Lumpur-based trader said.
Indonesia’s palm oil exports, including refined products, stood at 2.23 million tonnes in May, data from the Indonesian Palm Oil Association showed.
Malaysia’s palm oil exports during July 1-20 rose 10.1% from the month before according to AmSpec Agri Malaysia and 19% according to cargo surveyor Intertek Testing Services.
Dalian’s most-active soyoil contract DBYcv1 fell 2.00%, while its palm oil contract DCPcv1 lost 2.07%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.56%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil FCPOc3 may extend its gains into a resistance zone of 4,103-4,122 ringgit per metric ton, and reverse its uptrend thereafter, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.5760 ringgit)
(Reporting by Bernadette Christina Munthe and Dewi Kurniawati; Editing by Varun H K)
Source Link: https://www.nasdaq.com/articles/vegoils-palm-oil-drops-tracking-weaker-rivals-in-dalian
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