Malaysian palm oil futures fell on Wednesday, declining for a second consecutive session, after rival Chicago soyoil slumped overnight as improving U.S crop weather conditions eased concerns over global supply.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 27 ringgit, or 0.70%, to 3,824 ringgit ($920.12) a tonne during early trade.
FUNDAMENTALS
* European Union palm oil imports in the 2020/21 season that ended June 30 stood at 5.26 million tonnes versus 5.83 million in the last season, European Commission data showed on Tuesday.
* The U.S. Department of Agriculture rated 59% of U.S soybeans crop in good-to-excellent condition in a weekly report on Tuesday, down from 60% a week ago.
* Chicago Board of Trade soy futures closed sharply lower on Tuesday as forecasts for cooler, wetter weather in the U.S. Midwest eased concerns about unfavorable weather hurting crop yields.
* Soyoil prices BOcv1 gained 0.5%, after slumping 5.6% in the previous session. Dalian’s most-active soyoil contract DBYcv1 fell 2%, while its palm oil contract DCPcv1 declined 1.7%.
* 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 fall into a range of 3,602 ringgit to 3,691 ringgit per tonne, to cover a gap forming on July 1, Reuters technical analyst Wang Tao said.
Source: Reuters (Reporting by Mei Mei Chu )