Palm oil falls for second day on weak soyoil, output concerns

Malaysian palm oil futures dropped on Thursday for a second consecutive session, pressured by weaker soyoil prices and concerns over rising production in the weeks ahead.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 50 ringgit, or 1.28%, to 3,844 ringgit ($903.41) a metric ton at the midday break.

Crude palm oil futures were trading lower on weaker soybean oil prices due to a fall in crude oil prices and negative external market sentiment, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd. Ng added that concerns over rising output in the coming weeks are also pressuring the market.

“We see support at 3,800 ringgit and resistance at 3,980 ringgit,” he said. Dalian’s most-active soyoil contract fell 0.44%, while its palm oil contract shed 0.57%.

Soyoil prices on the Chicago Board of Trade were down 2.85%.

Tags: futures, benchmark contract, soyoil, Malaysia, palm oil