SINGAPORE: Malaysian palm oil futures edged lower for a second straight session on Monday, as rival oils slid and crude prices hit seven-week lows.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 31 ringgit, or 0.6% to 4,962 ringgit during early trade.
Crude oil extended declines after the previous session's slide, on concerns about excess supply after Japan said it was weighing releasing oil reserves and over demand from a worsening COVID-19 situation in Europe.
Dalian's most-active soyoil contract fell 1.9%, while its palm oil contract traded 1.1% lower.
Soyoil prices on the Chicago Board of Trade, meanwhile, were up 0.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Capping the losses, however, were higher palm oil exports in the November 1-20 period.
They rose at least 8% from the same period a month ago, data from cargo surveyors showed on Saturday.
Palm oil may test a support zone of 4,926-4,960 ringgit per tonne, following its failure to break a resistance at 5,071 ringgit, Reuters technicals analyst Wang Tao said.
FUNDAMENTALS
A jump in US business activity and home sales helped push global equities and the dollar higher on Friday, counteracting earlier stock declines in Europe. Oil fell about 1%.
Comments
Comments are closed for this article.