Palm oil slips 2% on expectations of weak export data
30/04/2024 (Reuters), Kuala Lumpur - Malaysian palm oil futures fell on Tuesday after gaining for two consecutive sessions, weighed by expectations of lower exports in the world's second-biggest producer and weak Chicago soyoil prices.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange slid 81 ringgit, or 2.07%, to 3,834 ringgit ($804.62) by the midday break.
Expectations ofweak export numbers as well as a freefall in soyoil prices on the Chicago Board of Trade have put pressure on Malaysian palm oil futures to regain market share in the physical market, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co.
Cargo surveyors are scheduled to release Malaysian palm oil export estimates for April later on Tuesday.
Dalian's most-active soyoil contract DBYcv1 lost 0.37%, while its palm oil contract DCPcv1 slipped 1.18%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.58%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Meanwhile, oiledged down in the session afterIsrael-Hamas ceasefire talks in Cairo helped quell market fears of an expanded conflict in the Middle East, while worries about the outlook for U.S. interest rates weighed on the market. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The Malaysian ringgit MYR=, palm's currency of trade, was flat against the dollar.
Palm oil may revisit its April 25 low of 3,817 ringgit per metric ton, as it failed twice to break resistance at 3,942 ringgit, Reuters technical analyst Wang Tao said. TECH/C