JAKARTA: Malaysian palm oil futures slipped on Tuesday, as market participants waited for new leads from the August export data, while a weak Chicago soyoil contract and a stronger ringgit weighed.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost 4 ringgit or 0.11% at 3,717 ringgit ($850.18) a metric ton by the midday break.
Crude palm oil is likely to trade in a range of 3,700 to 3,7500 ringgit, while export and production data are awaited, a Kuala Lumpur-based trader said.
The contract traded in a range of 3,702 to 3,737 ringgit early in the session. Cargo surveyors are expected to publish export data for Aug. 1-20 later in the day.
Cargo surveyors estimated exports of Malaysian palm oil products during Aug. 1-15 fell between 15.8% to 22.3% compared to the same period last month. Dalian’s most-active soyoil contract rose 0.68%, while its palm oil contract gained 0.98%.
Soyoil prices on the Chicago Board of Trade edged 0.05% lower.
Palm oil tracks price movements of related oils as it competes with them for a share of the global vegetable oils market.
Palm oil rises on bargain-hunting
The ringgit, the contract’s currency of trade, strengthened 0.18% against the US dollar to its highest since mid-February 2023, making the contract less attractive for foreign currency holders.
Palm oil may test resistance at 3,764 ringgit per metric ton, a break above which could confirm both a target of 3,809 ringgit and an inverted head-and-shoulders, Reuters technical analyst Wang Tao said.
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