10/04/2023 (Nasdaq), Jakarta - Malaysian palm oil futures dropped for a fourth session on Monday due to the absence of fresh destination buying, which hurt market sentiments, despite a tighter supply situation at origins.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange dropped 0.11% to 3,790 ringgit ($860.00) per tonne by the midday break, extending a 4.26% loss over the past three sessions.

"BMD crude palm oil futures opened lower following weakness in Dalian palm olein and soyoil futures and in expectations of a drop in Malaysian palm oil export between April 1-10," said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Data released during midday break showed Malaysia's palm oil inventories at the end of March fell 21.08% from the previous month to 1.67 million tonnes.

Cargo surveyors are expected to release export data for April 1-10 later on Monday.

Dalian's most-active soyoil contract DBYc1 dropped 1.21%, while its palm oil for May delivery DCPc2 was 0.65% lower. The Chicago Board of Trade BOcv1 rose 0.39%.

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 test a support at 3,740 ringgit per tonne, a break below which could open the way towards a range of 3,683-3,718 ringgit, said Reuters technical analyst Wang Tao. TECH/C

($1 = 4.4070 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-drops-for-fourth-session-ahead-of-output-data