06.07.2023 (Nasdaq) - KUALA LUMPUR, July 6 (Reuters) - Malaysian palm oil futures edged up on Thursday after a two-day slump, with market sentiment strengthening as it took cues from soyoil, forecasts of low June production and expectations of export picking up.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 16 ringgit, or 0.41%, to 3,878 ringgit ($832.72) a metric ton by the midday break.

The Malaysian Palm Oil Association estimated production in June to decline 7.4% from May, according to traders and analysts.

Exports are expected to pick up in July, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co.

Malaysia's palm oil inventories likely stood at 1.86 million metric tons by the end of June, up 10.5% month-on-month to stand at a four-month high amid sluggish exports, a Reuters survey showed on Tuesday.

The Malaysian Palm Oil Board (MPOB) is scheduled to release supply and demand data on July 10.

Dalian's most-active soyoil contract DBYcv1 fell 0.4%, while its palm oil contract DCPcv1 dipped 0.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1%, after a 2% overnight climb.

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 3,978 ringgit per metric ton, a break above could lead to a gain into a range of 4,039 ringgit to 4,122 ringgit, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.6570 ringgit)

cpo https://tmsnrt.rs/3JKBX4J

(Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee)

((Meifong.chu@thomsonreuters.com))

https://www.nasdaq.com/articles/vegoils-palm-oil-ticks-up-on-lower-production-forecast