VEGOILS-Palm oil tracks losses in rival oils, drops over 1%
27.05.2021 (www.todayonline.com) - SINGAPORE, May 27 - Malaysian palm oil futures fell more than 1% on Thursday as it tracked cheaper rival oils on the Chicago Board of Trade (CBOT) and the Dalian Commodity Exchange.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 1.1% to 3,980 ringgit ($961.35) a tonne in early trade.
"Palm oil is playing catch-up with external markets after a day of closure," a Kuala Lumpur trader told Reuters.
The Bursa Malaysia was closed on Wednesday for the Vesak Day holiday.
CBOT soybeans mostly slid overnight, touching their lowest in more than a month, as prices were pressured by crop-boosting rains in the United States.
Its soybean oil contract, however, was last up 0.1%.
Dalian's soyoil contract and palm oil contract fell 0.7% and 0.6%, respectively.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil is expected to bounce more to 4,132 ringgit per tonne, as it has pierced above a resistance at 4,010 ringgit, Reuters analyst Wang Tao said.
FUNDAMENTALS
* A nearly day-old port strike that snarled grains cargo traffic in Argentina was called off late on Wednesday after unions said they clinched a deal allowing them to be given priority in receiving COVID-19 vaccinations.
* Oil prices settled higher on Wednesday as a drop in U.S. crude stockpiles reinforced expectations of improving demand ahead of the peak summer driving season, offsetting worries that a possible return of Iranian supply would cause a glut.
DATA/EVENTS (GMT) 0130 Australia Capital Expenditure Q1 1230 US Durable Goods April 1230 US GDP 2nd Estimate Q1 1230 US Initial Jobless Clm Weekly ($1 = 4.1400 ringgit) REUTERS