Palm drops as surveys peg higher end-June stocks, output
- The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 11 ringgit
KUALA LUMPUR: Malaysian palm oil futures fell on Monday, shaving off some of last week's gains, as surveys projected a rise in end-June stockpiles and production ahead of official data.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 11 ringgit, or 0.29%, to 3,778 ringgit ($909.48) a tonne during early trade. It added 7.6% last week.
FUNDAMENTALS
Malaysia's palm oil inventories at the end of June likely hit a nine-month high, rising 7.5% from May to 1.69 million tonnes, a Reuters survey showed on Monday.
Production in the world's second-largest producer likely rose 7% from May to 1.68 million tonnes, while exports were seen jumping 10% to 1.39 million tonnes, the survey showed.
The Malaysian Palm Oil Board is scheduled to release June supply and demand data on July 12.
Dalian's most-active soyoil contract fell 0.2%, while its palm oil contract gained 0.7%. The Chicago Board of Trade was closed for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may fall into a range of 3,602 ringgit to 3,691 ringgit per tonne, as it faces a resistance at 3,853 ringgit, Reuters technical analyst Wang Tao said.
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