Malaysian crude palm oil futures fell by midday Wednesday, after a brief recovery the previous session, pressured by weaker crude oil, traders said. "This morning, crude oil was much lower and everybody is a bit scared to cover anything and kept on the sidelines," said one trader in Kuala Lumpur.
By midday, the benchmark August crude palm oil futures on Bursa Malaysia Derivatives Exchange dropped 0.29 percent, or 7 ringgit, to 2,438 ringgit ($790.9) a tonne. The contract hit as low as 2,424 ringgit. The second session might have "a technical rebound at 2,455 ringgit," a tonne, said the Kuala Lumpur trader.
Traded volume reached 3,082 lots of 25 tonnes each, well below the midday average of 5,000 lots. Other palm oil contracts fell between 0.12 percent and 0.78 percent. Reuters technical analysis showed that a target of 2,360 ringgit per tonne for Malaysian palm oil futures third-month contract remains unchanged as the trending signal is bearish.
Some market players expect higher soyaoil prices would also help lift palm oil in the second session. During Asian trading, US soyaoil futures inched higher, while the most-active January soybean oil contract on China's Dalian Commodity Exchange gained nearly half a percent.
In the Malaysian physical market, crude palm oil for May delivery was traded at 2,500 ringgit a tonne in the southern and central region. Meanwhile, June delivery was offered at 2,500-2,510 ringgit a tonne in the southern and central region. No deals were reported. Palm oil traders are on the lookout for Malaysia palm oil export data for May 1-20, due to be released on May 20 by cargo surveyors Intertek Testing Services and Societe Generale de Surveillance.
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