KUALA LUMPUR: Malaysian palm oil futures fell on Monday from a six-week closing high hit in the previous session, weighed down by weakness in rival soyoil after a US government report raised the country’s soybean forecast.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 95 ringgit, or 2.16%, to 4,312 ringgit ($968.34) a tonne during early trade.
US soybean production will be bigger than previously forecast as better-than-expected yields will more than make up for a cut to acreage, the government said on Friday. Soyoil prices on the Chicago Board of Trade were down 2.1%. Dalian’s most-active soyoil contract fell 0.4%, while its palm oil contract rose 0.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Palm oil faces a resistance at 4,452 ringgit per tonne, it may hover below this level or retrace towards a support at 4,269 ringgit, Reuters technical analyst Wang Tao said.