KUALA LUMPUR, Aug 7 (Reuters) – Malaysian palm oil futures eased on Monday on range-bound trading, weighed by expectations of higher supply in the world’s second-largest producer and sluggish demand.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 19 ringgit, or 0.49%, to 3,840 ringgit ($843.03) per metric ton by the midday break.
The market is on the back foot on lacklustre demand with key market India well covered for August, while seasonality production is picking up in Malaysia, said Mitesh Saiya, trading manager at Mumbai-based firm Kantilal Laxmichand & Co.
Malaysia’s palm oil inventories at the end of July likely rose to a five-month peak as higher production offset an increase in exports, a Reuters survey showed on Friday.
Investors awaited data from the Malaysian Palm Oil Board scheduled for Thursday.
Dalian’s most-active soyoil contract DBYcv1 slipped 0.6%, while its palm oil contract DCPcv1 eased 0.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.3%.
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 bounce into a resistance zone of 3,919 ringgit to 3,943 ringgit per metric ton, as it has stabilised around a support of 3,839 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.5550 ringgit)
cpo https://tmsnrt.rs/3qlEmwo
(Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips and Sohini Goswami)
Source : REUTERS
