09/05/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures retreated on Tuesday from a near three-week high scaled in the previous session, as traders assessed slow exports against forecasts of a steep drop in supply ahead of key data.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange slid 47 ringgit, or 1.25%, to 3,715 ringgit ($837.66) a tonne by the midday break, ending a four-session winning streak.

The contract jumped 12.7% in the last four sessions.

"Market is pricing in a possible dip in end-April stocks and the weather vagaries that comes along with the emergence of El Niño," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

In related oils, Dalian's most-active soyoil contract DBYcv1 fell 0.6%, while its palm oil contract DCPcv1 gained 0.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.1%.

The United Nations said on Sunday or Monday under a deal allowing the safe Black Sea export of Ukraine grain, which Moscow has threatened to quit on May 18 over obstacles to its own grain and fertilizer exports.

Palm oil may drop to 3,634 ringgit per tonne, as it failed to break a resistance at 3,817 ringgit, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.4350 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-retreats-from-3-week-high-on-slow-exports