KUALA LUMPUR: Malaysian palm oil futures opened lower for a third straight session on Tuesday, tracking weakness in rival Dalian oils.
Palm ends lower on losses in soyoils; weaker ringgit limits decline
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange slid 12 ringgit, or 0.25%, to 4,746 ringgit ($1,067.96) a metric ton in early trade.
Fundamentals
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Dalian’s most-active soyoil contract fell 0.23%, while its palm oil contract shed 1.05%. Soyoil prices on the Chicago Board of Trade were up 0.07%.
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Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
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The ringgit, palm’s currency of trade, strengthened 0.13% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
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Oil prices were range-bound in early Asian trading as investors worried about Chinese demand and awaited further market direction from a US interest rate decision due on Wednesday.
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Palm oil may break support at 4,701 ringgit per metric ton and fall towards 4,626 ringgit, Reuters technical analyst Wang Tao said.
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