The Edge Markets (24/06/2019) - KUALA LUMPUR/SINGAPORE (June 24): Malaysian palm oil futures slid for a third consecutive session on Monday, tracking weakness in a rival edible oil and weighed down by market talk of poorer export numbers.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was down 1.2% at 1,997 ringgit (US$482.60) per tonne at the close, the largest intra-day drop since June 12.

The most-active Chicago Board of Trade soyoil futures were 0.3% lower, while China's Dalian soybean oil prices were down 0.9%.

"Rumour of poorer exports are weighing on palm, and soyoil prices are also dropping," said one Kuala Lumpur-based trader.

Another trader added that demand was slow, topped with concerns that U.S.-Iran tensions could worsen demand.

Crude oil prices climbed on Monday as tensions remain high between Iran and the United States, with U.S. Secretary of State Mike Pompeo saying "significant" sanctions on Tehran would be announced.

Palm oil looks neutral in a range of 2,001-2,046 ringgit per tonne, and an escape could suggest a direction, according to Wang Tao, a Reuters analyst for commodities technicals.

The range is formed by the 76.4% and the 61.8% projection levels of a downward wave C from 2,235 ringgit. A break above 2,046 ringgit could lead to a gain to 2,082 ringgit.

(US$1 = 4.1380 ringgit)
(US$1 = 6.88 Chinese yuan)
(US$1 = 69.41 Indian rupees)

Read more at https://www.theedgemarkets.com/article/palm-oil-falls-weak-soyoil-prices-exports-rumour