KUALA LUMPUR: Malaysian palm oil futures shed previous session's rally to edge lower on Monday as traders locked in gains and sold on technical data reflecting a bearish outlook.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 0.4 percent at 2,181 ringgit ($527.45) a tonne at the midday break.
Palm rose 0.3 percent last Friday, supported by a soft ringgit that declined 0.3 percent.
Palm prices are affected by the movement in ringgit as strengthening in the currency makes the commodity more expensive for foreign buyers.
The market seemed uncertain despite a rally in crude oil, a Kuala Lumpur-based trader said.
"This is perhaps because there is some technical selling and profit-taking after the price failed to sustain above 2,200
ringgit this morning," the trader said. The market will have a "bear bias" as exports slowed but production has not shrunk as expected, another trader said.
"Initial expectations is that end-stocks may draw down to 2.5 million tonnes by July, but it is not clear if that is achievable now," the trader said.
Independent inspection company AmSpec Agri Malaysia said on Saturday that Malaysia's April 1-20 palm oil exports dropped 1.8 percent.
In other related oils, the Chicago May soybean oil contract dipped 0.3 percent. Meanwhile, the May soyoil contract on the Dalian Commodity Exchange slipped 0.2 percent, and the Dalian May palm oil contract fell 0.5 percent.
Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.
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