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By Fransiska Nangoy
JAKARTA, Feb 13 (Reuters) – Malaysian palm oil futures dropped on Monday erasing an earlier gain, after rival oils turned negative and dragged on sentiment for palm despite strong export data.
The benchmark palm oil contract FCPOc3 for April delivery fell 0.89% to 3,896 ringgit ($893.78) per tonne. The contract gained as much as 0.79% earlier in the session.
The Feb.1 – Feb.10 export data released over the weekend “should be supportive, yet our market is influenced by Dalian behaviour,” said a trader in Kuala Lumpur, adding market participants would likely wait for the Feb.1 – Feb.15 export data to decide their further move.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Dalian’s most-active soyoil contract DBYv1 eased from its 1.11% gain to trade sideways, while its palm oil contract DCPv1 fell 0.81%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.82%.
An official said on Monday that the review is still ongoing and the government continue to asses market condition.
Palm oil may retest a support of 3,859 ringgit per tonne, a break below which could be followed by a drop to 3,708 ringgit, Reuters technical analyst Wang Tao said.
($1 = 4.3590 ringgit)
(Reporting by Fransiska Nangoy; Additional reporting by Bernadette Christina Munthe; Editing by Rashmi Aich, Nivedita Bhattacharjee)
((Fransiska.Nangoy@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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