KUALA LUMPUR:  Malaysian palm oil futures on Monday shed early gains, easing from a seven-week high, in line with weaker crude oil and soyoil prices on the Chicago Board of Trade (CBOT).

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 0.3% at 2,061 ringgit ($500.24) per tonne at the midday break, slated to snap five straight sessions of gains.

Earlier in the session, the contract hit its highest since June 7 at 2,075 ringgit per tonne.

Palm oil may temporarily peak in a range of 2,076-2,083 ringgit per tonne, as suggested by a Fibonacci ratio analysis, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

“Palm prices are tracking lower CBOT soyoil and crude oil prices, along with profit-taking ahead of Tuesday's market close," said a Kuala Lumpur-based futures trader.

Malaysian markets will be closed on Tuesday for a public holiday, and resume trading on Wednesday.

Oil prices fell on Monday as investors fretted over the outlook for global economic growth, while weekend talks between Iran and major powers ended on a generally positive note, suggesting an easing of tensions in the Middle East.

In related edible oils, U.S. soyoil futures on the CBOT closed up 0.8% on Friday, but were last down 0.2% on Monday.

Meanwhile, the September soyoil contract on the Dalian exchange rose 0.8% and the Dalian September palm oil contract gained 0.9%.

Copyright Reuters, 2019