By Mei Mei Chu
KUALA LUMPUR, Nov 26 (Reuters) – Malaysian palm oil futures edged lower on Friday and were on course for a weekly decline, weighed down by weaker crude and rival Dalian prices, and by slowing exports.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange slid 11 ringgit, or 0.22%, to 4,916 ringgit ($1,159.43) a tonne by the midday break.
The contract has fallen 1.54% so far this week after two straight weekly gains, also hurt by a forecast for stronger production of top vegetable oils next year.
“Prices are juxtaposed between bearish technicals and friendly fundamentals,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Exports of Malaysian palm oil products for Nov. 1-25 rose between 4.5% and 10.9% from the same period in October, according to cargo surveyor data released on Thursday.
The pace of growth, however, slowed from a monthly rise of between 9% and 18% seen during Nov. 1-20.
Exports in December are expected to be upbeat, although a lack of selling in the physical market indicates weak production, Paramalingam said.
Oil prices slid more than 2% on concerns that a global supply surplus could swell in the first quarter, making palm a less attractive option for biodiesel feedstock. O/R
Dalian’s most-active soyoil contract DBYcv1 was unchanged, while its palm oil contract DCPcv1 slipped 0.8%. The Chicago Board of Trade BOcv1 was closed for a public holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
The ringgit MYR=, palm’s currency of trade, fell 0.38% against the dollar, making the edible oil cheaper for holders of foreign currency.
Palm oil may break a support at 4,902 ringgit per tonne, and fall to the next support at 4,827 ringgit, Reuters technical analyst Wang Tao said. TECH/C
cpohttps://tmsnrt.rs/3p0XTNX
(Reporting by Mei Mei Chu; Editing by Rashmi Aich and Subhranshu Sahu)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com