02.07.2020 (TODAYonline) - SINGAPORE, July 2 - Malaysian palm oil futures rose on Thursday due to costlier rival oils, although gains were capped on weak crude oil prices.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange rose 0.3% to 2,333 ringgit ($544.71) a tonne in early trade.

Palm's rival soyoil rallied to a near three-month high overnight on the Chicago Board of Trade (CBOT) on concerns that hot and dry weather could stress crops and reduce yield potential. It was last up 0.4%.

Meanwhile, Dalian's most-active soyoil contract rose 1.7%, while its palm oil contract fell 0.4%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Weighing on the market, crude oil prices dipped as the United States recorded its biggest one-day spike in COVID-19 cases and California reimposed some lockdown measures, stoking worries of a halt in fuel demand's recovery.

Weaker crude prices make palm a less attractive option for biodiesel feedstock.

Palm oil may retest a resistance at 2,351 ringgit per tonne, as suggested by a projection analysis and a falling channel.

FUNDAMENTALS.

* Chicago corn futures fell for the first time in five sessions on Thursday as the market took a breather after climbing to its highest since late-March due to lower U.S. planting.

* Asian stocks tracked Wall Street higher although sentiment was cautious ahead of U.S. employment data. REUTERS

Read more at https://www.todayonline.com/world/vegoils-palm-inches-higher-costlier-rivals-weak-crude-caps-gains