Palm slides on weak rival oils, concerns over rising output, stocks
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange slid 31 ringgit, or 0.73%, to 4,242 ringgit ($1,005.69) a metric ton at the midday break.
Crude palm oil traded lower due to weakness in the Dalian and the soyoil market during Asian hours, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
'Rising production and stock levels could be seen as weighing down on market sentiment as well,' he said.
Dalian's most-active soyoil contract fell 0.61%, while its palm oil contract shed 0.89%. Soyoil prices on the Chicago Board of Trade (CBOT) lost 0.32%.
Palm oil tracks the price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Meanwhile, oil prices rose after the U.S. reached a deal with the European Union and may extend a tariff pause with China, easing concerns that potentially higher levies would limit economic activity and impact fuel demand.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Cargo surveyors estimated exports of Malaysian palm oil products for July 1-25 to have fallen between 9.2% and 15.2% from a month earlier.
The ringgit, palm's currency of trade, remained unchanged against the U.S dollar.
Palm oil may test support at 4,211 ringgit per metric ton, a break below which could open the way towards 4,161 ringgit, Reuters technical analyst Wang Tao said.
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