Palm oil prices fall on the back of weaker soyoil, ringgit and palm oil

Malaysian palm ?oil futures fell on Tuesday after hitting a ?one-and-a-half-month high in the last session, with weaker soyoil prices ?and a stronger ringgit weighing ?on the market.

After two consecutive sessions of gains, the benchmark 'palm oil' contract for September delivery at the Bursa Derivatives exchange fell 33 ringgit or 0.71% to 4,639 Ringgit ($1,121.07), a metric tonne, by midday.

Prices fell today as Chicago soyoil and crude oil dropped during Asia trading hours. A Kuala?Lumpur based trader also said that the ringgit strengthened.

Chicago Board of Trade soyoil prices fell by 0.49%. The Dalian Commodity Exchange's most active?soyoil contracts fell by 0.29% while palm oil prices dropped by 0.34%.

As it competes to gain a share in the global vegetable oil market, palm oil tracks the price movement of competing edible oils.

Oil prices continued to decline, extending the losses of the previous session as investors waited for more clear signs of progress on restoring crude flow through the Strait of Hormuz after U.S. Iran peace talks.

Palm oil is less attractive as a biodiesel feedstock due to lower crude oil futures.

Intertek Testing Services, a cargo-surveyor, reported that exports of Malaysian products containing palm oil for the period June 1-20 were up 19.1% compared to a month ago.

AmSpec Agri Malaysia, an independent inspection company, said that shipments over the same period increased by 25% on a month-to-month basis.

The palm ringgit's trade currency strengthened by 0.19% against?dollars, increasing the price of the commodity for buyers with?foreign currencies.

Technical analyst Wang Tao stated that palm oil could retrace to a range between 4,602 and 4,641 ringgit a tonne due to the completion of a five-wave?cycle from 4,438?ringgit.

(source: Reuters)