Palm slips on weaker Chicago soyoil but still set for weekly gain
KUALA LUMPUR: Malaysian palm oil futures fell on Friday, snapping a five-session rally, pressured by weaker rival Chicago soyoil, although the market remained on track for a weekly gain.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid RM72, or 1.83 per cent, to RM3,860 (US$910.38) a metric ton at the midday break.
The contract has gained 1.99 per cent so far this week.
Crude palm oil futures traded lower tracking weakness in the Chicago soybean oil market, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
"We identify support at RM3,800 and resistance at RM3,950," he said.
Dalian's most-active soyoil contract fell 0.93 per cent, while its palm oil contract lost 1.16 per cent. Soyoil prices on the Chicago Board of Trade were down 2.91 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices were on track for a second consecutive weekly decline, weighed down by expectations of another OPEC+ output hike in July and fresh uncertainty after the latest legal twist kept US President Donald Trump's tariffs in place.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, remained unchanged against the US dollar.
Palm oil may retrace to RM3,886 per ton, as it has broken support at RM3,912, Reuters technical analyst Wang Tao said.
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