Palm charts losing session on weaker related oils


KUALA LUMPUR: Malaysian palm oil futures fell to a one-week low in Thursday trade, weighed down by losses in related edible oils on China’s Dalian Commodity Exchange and weaker US soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was last down 0.3% at 2,064 ringgit ($498.07) a tonne at the close.
It earlier fell to 2,049 ringgit, its lowest since July 26.
Palm oil could test support at 2,038 ringgit a tonne, a break below which could cause a fall to 1,991 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
The market had tracked the Dalian lower, one Kuala Lumpur-based futures trader said, adding that overnight US soyoil weakness also pressured prices.
CBOT soyoil futures had slumped nearly 2% on Wednesday but were up 0.5% by 1104 GMT on Thursday.
Grains prices in the US registered sharp falls on Wednesday as analysts said that US crop weather was not threatening. They steadied on Thursday, rebounding from a seven-week low in the previous session, though forecasts for more benign weather limited gains.
In related edible oils, the September soyoil contract on the Dalian exchange lost 0.8% and the Dalian September palm oil contract eased by 0.3%.
Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market.