Palm oil falls over 3%, weaker soyoil drags

August 1, 2022: Malaysian palm oil futures fell more than 3% early Monday, snapping a four-session rally as traders booked profits and the contract tracked losses in Chicago soyoil.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 153 ringgit, or 3.57%, to 4,136 ringgit ($929.44) a tonne during early trade.

The contract surged 8.4% last week to its highest in over three weeks.

FUNDAMENTALS

Exports of Malaysian palm oil products for July rose 0.8% to 1,278,579 tonnes from 1,268,523 tonnes shipped during June, cargo surveyor Intertek Testing Services said on Sunday.

Dalian's most-active soyoil contract DBYcv1 gained 0.5%, while its palm oil contract DCPcv1 rose 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.5%.

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 the resistance of 4,452 ringgit per tonne, a break above which could lead to a gain to 4,680 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

Asian share markets got off to a slow start on Monday as disappointing Chinese economic data fed doubts last week's rally on Wall Street could be sustained in the face of determined policy tightening by global central banks.

Reuters