Palm falls on weaker soyoil, concerns over rising output, stock levels
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid RM36, or 0.94 per cent, to RM3,791 (US$901.97) a metric ton at the midday break.
Crude palm oil futures were down due to concerns over rising output and rising stock levels in the coming weeks, while weakness in the soybean oil market also weighed on prices, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Dalian's most-active soyoil contract fell 0.98 per cent, while its palm oil contract shed 0.77 per cent. The Chicago Board of Trade (CBOT) is closed for a holiday.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
The ringgit, palm's currency of trade, strengthened 0.59 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Oil prices gained in early Asian trade after US President Donald Trump extended the deadline for trade talks with the European Union, easing concerns about US tariffs on the bloc that could hurt the global economy and fuel demand.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil is poised to break support of RM3,812 per metric ton and fall to RM3,768, Reuters technical analyst Wang Tao said.
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