June 25, 2019 / 4:01 AM / 3 months ago

Palm dips on selling pressure, prospects of dismal export data

KUALA LUMPUR (Reuters) - Malaysian palm oil futures slid on Tuesday, poised for a fourth consecutive session of declines, as the overnight rally in soyoil prices failed to offset selling pressures.

A worker unloads palm oil fruit bunches from a lorry inside a palm oil mill in Bahau, Negeri Sembilan, Malaysia January 30, 2019. REUTERS/Lai Seng Sin/Files

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was down 0.1% at 1,997 ringgit ($482.13) per tonne at the midday break.

The most-active Chicago Board of Trade (CBOT) soyoil futures were up as much as 1%, while China’s Dalian soybean oil prices rose as much as 0.3%.

An overnight rally in CBOT soyoil prices boosted palm oil at the market open on Tuesday, but underlying selling pressure for the tropical oil remained, a Kuala Lumpur-based trader said.

“Continuous selling pressure could weigh on palm and a crucial support is seen at about 1,992-1,994 ringgit,” the trader said.

Traders have been responding to market rumours that palm exports data, which is due on Tuesday, would be lower than expected.

Palm oil may fall to 1,971 ringgit per tonne, as it has pierced below a support at 2,001 ringgit, Wang Tao, a Reuters analyst for commodities technicals said.

A gap forming between June 21 and June 24 suggests a good chance of palm oil breaking 2,001 ringgit and falling towards 1,971 ringgit.

A rise to the June 21 low of 2,021 ringgit could signal palm oil may retest the resistance at 2,046 ringgit, Tao said.

($1 = 4.1420 ringgit)

($1 = 69.25 Indian rupees)

($1 = 6.88 Chinese yuan)

Reporting by Liz Lee; Editing by Sherry Jacob-Phillips

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