Palm extends falls on lower EU imports, cheaper rivals

SINGAPORE: Malaysian palm oil futures fell for a third straight session on Wednesday, tracking weakness in rival Chicago and Dalian oils and weighed down by lower European Union imports.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange declined 0.8% to 4,222 ringgit ($1,018.33) a tonne by midday.

A Kuala Lumpur-based trader told Reuters palm was tracking rival oils lower.

The Chicago Board of Trade's (CBOT) soybean oil contract fell 0.2% due to concerns about export disruptions. Palm and soybean oil prices on the Dalian Commodity Exchange declined 1.5% and 0.8%, respectively.

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

The European Union's palm oil imports in the 2021/22 season that started in July had reached 747,484 million tonnes by Aug. 29, compared with 1.13 million tonnes in the same period last year.

Palm oil may fall into a range of 4,096 ringgit to 4,155 ringgit per tonne, driven by a wave c, Reuters technicals analyst Wang Tao said.