VEGOILS-Palm oil falls ahead of key data; set for second weekly gain
By Mei Mei Chu
KUALA LUMPUR, July 7 (Reuters) – Malaysian palm oil futures slipped on Friday, tracking overnight losses in rival soyoil, as traders awaited key palm oil board data, although the market is on course for a second weekly gain.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 50 ringgit, or 1.28%, to 3,861 ringgit ($827.12) a metric ton by the midday break.
For the week, palm gained nearly 2% so far.
The Malaysian Palm Oil Board is scheduled to release June supply-and-demand data on Monday.
A Reuters’ survey on Wednesday forecast end-June inventories to rise 10.5% from the month before to 1.86 million metric tons due to slow exports and nearly flat output.
But traders are concerned of a sharper decline in production, which may squeeze inventory levels.
Dalian’s most-active soyoil contract DBYcv1 fell 0.8%, while its palm oil contract DCPcv1 lost 1.1%. Soyoil prices on the Chicago Board of Trade BOcv1 ticked higher after a 3.5% overnight slump.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil looks neutral in a range of 3,853-3,925 ringgit per metric ton, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.6680 ringgit)
(Reporting by Mei Mei Chu; Editing by Rashmi Aich)
