Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm slides for second day tracking weaker edible oils

SINGAPORE, May 30 (Reuters) - Malaysian palm oil futures extended losses for a second straight session on Tuesday, tracking weakness in rival edible oils.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange fell 0.93% to 3,509 ringgit ($791.21) per tonne in morning trade.

FUNDAMENTALS
Crude palm oil production in Malaysia, the world's second-largest producer, could drop between 1 and 3 million tonnes next year due to the El Nino weather pattern, the Malaysian Palm Oil Board said last Thursday.

Malaysia's exports during May 1-25 fell 0.7% from the same period in April, cargo surveyor Intertek Testing Services said on Friday. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.7%.

Dalian's most-active soyoil contract DBYcv1 dipped 1.0%, while its palm oil contract DCPcv1 was down 0.9%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.1%.

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

Palm oil FCPOc3 may retest support at 3,498 ringgit per tonne, as it failed twice to break a resistance at 3,563 ringgit, said Reuters technical analyst Wang Tao.

MARKET NEWS
Asian markets were trading mostly in positive territory on Tuesday as investors applauded the prospect the U.S. will avert a major debt default by June 5 which improved sentiment across most major asset classes.
By: via Malaysian Palm Oil Council Russia