Malaysian palm oil futures edged lower on Monday, as rival soyoil fell on the Chicago Board of Trade (CBOT) with soybean futures dropping to a two-week low.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange fell 0.4% to 4,254 ringgit ($1,007.58) a tonne during early trade.
The contract fell due to “weakness in CBOT soyoil”, Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group, told Reuters.
U.S. soybean futures fell 1% to hit a two-week low on Monday as updated weather models called for more favourable weather in the coming weeks, easing concerns over crops.
Its soybean oil contract BOc2 was down 1.4%.
Meanwhile, Dalian’s most-active soyoil contract DBYcv1 fell 0.7%, while its palm oil contract DCPcv1 gained 0.4%.
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 break a resistance at 4,274 ringgit per tonne and rise to 4,344 ringgit per tonne, as it has pierced above a lower resistance at 4,260 ringgit, said Reuters technicals analyst Wang Tao. TECH/C
MARKET NEWS
* Asian shares struggled to rally on Monday as super-strong U.S. corporate earnings sucked funds out of emerging markets and into Wall Street.
MKTS/GLOB
DATA/EVENTS (GMT)
0800 Germany Ifo Business Climate New July
0800 Germany Ifo Curr Conditions New July
0800 Germany Ifo Expectations New July
1400 US New Home Sales-Units June
Source: Reuters (Reporting by Fathin Ungku; editing by Vinay Dwivedi)