Palm oil falls on weaker crude, rival soyoil

Malaysian palm oil inventories fell 6.3% at end-June from a month earlier, while production jumped 14.2%, according to the Malaysian Palm Oil Board

Agencies
Oil slipped as traders eyed an OPEC technical meeting this week that is expected to recommend an easing in supply cuts that have been propping up crude prices.
Malaysian palm oil futures fell on Monday, tracking losses in crude and rival soyoil, while and as higher June production also hurt sentiment.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 25 ringgit, or 1.04%, to 2,387 ringgit ($560.86) a tonne during early trade, after falling 0.95% last week.

FUNDAMENTALS


Exports during July 1-10 fell between 16.8% and 17.8% from the previous month, according to cargo surveyors on Friday.

Malaysian palm oil inventories fell 6.3% at end-June from a month earlier, while production jumped 14.2%, according to the Malaysian Palm Oil Board on Friday.

Oil slipped as traders eyed an OPEC technical meeting this week that is expected to recommend an easing in supply cuts that have been propping up crude prices. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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Dalian's most-active soyoil contract fell 0.69%, while its palm oil contract dipped 0.96%. Soyoil prices on the Chicago Board of Trade were also trading down 0.66%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

MARKET NEWS

Asian shares got off to a firm start on Monday as investors wagered U.S. earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.
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