KUALA LUMPUR: Malaysian palm oil futures traded range-bound during the first half of trade on Friday morning, limited by weakness in crude oil prices and US soyoil prices on the Chicago Board of Trade.
Benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was last slightly up 0.1pc at 2,087 ringgit ($497.38) per tonne at the midday break.
The market is up 3.7pc so far this week, but is on track for a fourth straight monthly decline with a 0.4pc drop on-month so far.
Palm oil may retest a resistance at 2,111 ringgit per tonne, a break above which could lead to a gain to 2,148 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
"The market is following weaknesses in competing vegetable oils and the energy front," said a futures trader in Kuala Lumpur, as palm oil prices are impacted by movements in related commodities.
Malaysian palm oil exports also rose 7.1-10.2pc on a monthly basis in May, according to data from cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia on Friday.
Oil prices fell on Friday and were on track for their biggest monthly fall since November as trade conflicts spread and US crude output returned to record levels.
Meanwhile, the Chicago July soybean oil contract declined 0.5pc after four earlier sessions of gains. Soybean prices are set to finish May on a positive note for the first time in four months.
In other related oils, the September soyoil contract on the Dalian Commodity Exchange slipped 0.1pc and the Dalian September palm oil contract eased 0.2pc.
Palm oil prices are affected by movements in soyoil, with which it competes for global market share.
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