19/06/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures eased on Monday after surging 6% in the previous session, although concerns over dry weather taking a toll on global production of palm and soybeans kept the contract near six-week highs.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 9 ringgit, or 0.24%, to 3,734 ringgit ($808.75) per metric ton during early trade.

FUNDAMENTALS

* Global oil prices fell on Monday, backing off last week's gains as questions over China's economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States. O/R

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

* Chicago soybean futures extended gains on Friday to hit their highest in nearly six weeks, as signs of a worsening drought in the U.S. Midwest heightened crop concerns while oilseed crushing data suggested brisk demand.

* Soyoil prices on the Chicago Board of Trade BOcv1 were closed for a public holiday. Dalian's most-active soyoil contract DBYcv1 rose 1.5%, while its palm oil contract DCPcv1 gained 2.1%.

* 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 retest a resistance at 3,791 ringgit per metric ton, driven by a powerful wave c, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares started cautiously on Monday after their best weekly run in five months, as investors looked ahead to China's rate decision and U.S. Federal Reserve Chair Jerome Powell's testimonies for clues on the path ahead. MKTS/GLOB

DATA/EVENTS (GMT)

-- UK House Price Rightmove M/M, Y/Y June

($1 = 4.6170 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-falls-after-rally-but-weather-concerns-lend-support