Palm extends losses on cheaper rival oils

SINGAPORE: Malaysian palm oil futures extended losses for a second session on Monday, tracking declines in rival vegetable oils on the Dalian Commodity Exchange and Chicago Board of Trade (CBOT).

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 49 ringgit, or 1.5%, to 3,233 ringgit ($799.26) a tonne by midday.

It shed 0.2% on Friday and saw its second weekly loss as exports continued to drop.

"Prices are down due to spillover weakness from external markets," a Kuala Lumpur-based trader told Reuters.

CBOT soybean futures extended losses on Monday as rains in South American growing regions eased concerns about tight global supplies. Soyoil prices on the CBOT were last down 0.2%.

Meanwhile, Dalian's most-active soyoil contract fell 1.4% and its palm oil contract dropped 0.8%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

The contract may break a resistance at 3,300 ringgit per tonne and rise to a range of 3,348-3,381 ringgit, as the fall from the Jan. 6 high of 3,888 ringgit has been completed.

A Reuters poll last week found that palm oil production in Malaysia and Indonesia is expected to recover and drive volatility in prices this year, which may reach nine-year highs.