Palm falls on weak rival oils, stronger crude oil limits decline
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid RM19, or 0.44 per cent, to RM4,254 (US$1,008.30) a metric ton in early trade.
Dalian's most-active soyoil contract fell 0.42 per cent, while its palm oil contract shed 0.78 per cent. Soyoil prices on the Chicago Board of Trade were down 0.38 per cent.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Oil prices rose after the US reached a trade deal with the European Union and may extend a tariff pause with China, reducing concerns that potentially higher levies would limit economic activity and impact fuel demand.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Cargo surveyors estimated that exports of Malaysian palm oil products for July 1–25 fell between 9.2 per cent and 15.2 per cent from a month earlier.
The ringgit, palm's currency of trade, weakened 0.02 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
Palm oil may test support at RM4,211 per metric ton, a break below which could open the way towards RM4,161, Reuters technical analyst Wang Tao said.
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