Malaysian palm oil futures edged lower at the close of trade on Tuesday as a fall in soyaoil prices and expectations of rising July output weighed. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was last down 0.2% at 1,942 ringgit ($468.97) per tonne, charting a second day of declines. Palm oil may test support at 1,929 ringgit per tonne, a break below which could cause a loss to 1,908 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
"Malaysia's full month production is expected to be higher," said a trader in Kuala Lumpur, referring to July output. Another trader added that while prices dipped on weaker related oils, the market largely traded in a range ahead of palm export data by cargo surveyors. Malaysia palm oil shipment data from cargo surveyors are scheduled for release on Wednesday after 0400 GMT.
In other related oils, US soyaoil futures on the Chicago Board of Trade were down 0.1% on Tuesday after seeing overnight gains of 1.6% on Monday. US soyabeans edged lower on Tuesday, but losses were checked after data from the US Department of Agriculture (USDA) showed that the condition of North American crops lagged market expectations, which led to supply-crunch fears. Meanwhile, the September soyaoil contract on the Dalian Commodity Exchange edged down 0.6%, and the Dalian September palm oil contract fell 1.6%. Palm oil prices are impacted by movements in related oils, as they compete for a share in the global vegetable oils market.
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