Palm loses more than 2% on weaker soyoil prices

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JAKARTA (June 16): Malaysian palm oil futures dropped more than 2% today, shedding sharp gains from the previous session, weighed down by a fall in soyoil prices.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange dropped 2.51% to RM3,453 a tonne.

Soyoil contract on the Chicago Board of Trade (CBOT) dipped 0.23%. Soybean oil prices on the Dalian Commodity Exchange dropped 0.42%, while its palm oil contract rose 0.17%.

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 break resistance at RM3,602 per tonne and rise into a range of RM3,691 to RM3,757, Reuters technicals analyst Wang Tao said.

Fundamentals

Oil prices rose today, with Brent gaining for a fifth consecutive session, as falling stockpiles and a recovery in demand encouraged investors.
US corn futures rose nearly 1% today, underpinned by concerns about potential yield losses from recent unfavourable weather.
Asian shares were subdued today, with investors wary of any hint of hawkishness from the US Federal Reserve (Fed) given lofty asset valuations rely so heavily on an endless supply of super-cheap money.