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By Dewi Kurniawati
JAKARTA, April 10 (Reuters) – Malaysian palm oil futures dropped for a fourth session on Monday due to the absence of fresh destination buying, which hurt market sentiments, despite a tighter supply situation at origins.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange dropped 0.11% to 3,790 ringgit ($860.00) per tonne by the midday break, extending a 4.26% loss over the past three sessions.
“BMD crude palm oil futures opened lower following weakness in Dalian palm olein and soyoil futures and in expectations of a drop in Malaysian palm oil export between April 1-10,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Data released during midday break showed Malaysia’s palm oil inventories at the end of March fell 21.08% from the previous month to 1.67 million tonnes.
Cargo surveyors are expected to release export data for April 1-10 later on Monday.
Dalian’s most-active soyoil contract DBYc1 dropped 1.21%, while its palm oil for May delivery DCPc2 was 0.65% lower. The Chicago Board of Trade BOcv1 rose 0.39%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may test a support at 3,740 ringgit per tonne, a break below which could open the way towards a range of 3,683-3,718 ringgit, said Reuters technical analyst Wang Tao. TECH/C
($1 = 4.4070 ringgit)
(Reporting by Dewi Kurniawati; Editing by Janane Venkatraman)
((Dewi.Kurniawati@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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