Mumbai, 15 Jul (Commoditiescontrol): Malaysian crude palm oil futures opened lower on Monday, reflecting the decline in rival Dalian and Chicago oils, as traders awaited export estimates from cargo surveyors for the July 1-15 period.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange dropped 13 ringgit, or 0.33%, to 3,902 ringgit ($835.01) per metric ton in early trade. The contract fell 3.1% last week.
In related markets, Dalian's most-active soyoil contract fell 0.84%, while its palm oil contract decreased by 0.85%. Soyoil prices on the Chicago Board of Trade were down 2.04%. Palm oil prices are influenced by movements in these related oils as they compete for a share in the global vegetable oils market.
Cargo surveyors are expected to release their estimates of Malaysian palm oil exports for July 1-15 later on Monday. These estimates are closely watched by traders for insights into demand trends.
Adding to the bearish sentiment, oil prices fell for a second day as the dollar gained ground amid political uncertainty in the United States following an attack on U.S. presidential candidate Donald Trump. Investors are also monitoring the progress of ceasefire talks in Gaza.
Weaker crude oil futures make palm oil a less attractive option for biodiesel feedstock, impacting its demand.
The ringgit, the currency used for palm oil trade, weakened by 0.13% against the dollar, making the commodity less expensive for buyers holding foreign currencies.
Technical analysis suggests that palm oil may test support at 3,890 ringgit per metric ton. A break below this level could open the way towards 3,850 ringgit.
(By Commoditiescontrol Bureau: 09820130172)
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