Palm oil falls for second session as firmer ringgit, rival oils weigh
01/08/2024 (Reuters), Jakarta - Malaysian palm oil futures dropped for a second consecutive session on Thursday as a stronger ringgit and weakness in rival vegetable oils weighed on the contract.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia DerivativesExchange lost 47 ringgit, or 1.2%, to 3,861 ringgit ($852.24) a metric ton by the midday break.
The contract fell 0.18% in July, its secondconsecutive monthly drop.
"Malaysia crude palm oil futures is tracking Dalian performance closely as well as our ringgit strengthening," a Kuala Lumpur-based trader said.
TheMalaysian ringgit, the contract currency of trade, strengthened against the U.S. dollar for a sixth straight session, rising0.85% by midday.
A stronger ringgit can reduce buying interest for foreign currency holders.
Dalian's most-active soyoil contract DBYcv1 was down 0.55%, while its palm oil contract DCPcv1 dropped 0.66%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.39%.
Palm oil tracks the pricemovements of rival edible oils as they compete for a share of theglobal vegetable oils market.
Malaysian palm oil exports in July are seenrising between 22.8% and 30.91%, cargo surveyor Amspec Agri and Intertek Testing Services said.
Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports stood at 1.48 million tons, according to LSEG, a 23.6% jump from June exports.
Palm oil FCPOc3 is expected to retest support at 3,881 ringgit per metric ton, a break below which couldopen the way towards 3,849 ringgit, Reuters technical analyst Wang Tao said TECH/C.