20.05.2021 (www.hellenicshippingnews.com) - Malaysian palm oil futures dropped on Wednesday, after rallying 5% in the previous session, as weaker global edible and crude oils weighed on sentiment.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange slid 134 ringgit, or 3.01%, to 4,323 ringgit ($1,047.75) a tonne by 0306 GMT, its sharpest intraday percentage fall in three weeks.

FUNDAMENTALS

* Oil settled lower on Tuesday, tumbling from a two-month high after media reports said the United States and Iran have made progress on reviving a deal restricting the OPEC country’s nuclear weapons development, which would boost crude supply. O/R

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. O/R

* Dalian’s most-active soyoil contract DBYcv1 fell 0.6%, while its palm oil contract DCPcv1 declined 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.7%.

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

* Palm oil may break a support at 4,369 ringgit per tonne, and fall to 4,273 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Wall Street stocks fell on Tuesday, with technology shares turning lower in late New York trading, while the U.S. dollar touched its lowest level since late February.

DATA/EVENTS

0130 Australia Wage Price Index QQ, YY Q1

0600 UK CPI YY April

0900 EU HICP Final MM, YY April

1600 Russia Industrial Output April

1800 US Federal Open Market Committee releases the minutes from its April 27-28 policy meeting
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich)