JAKARTA, Oct 2 (Reuters) - Malaysian palm oil futures fell 2.7% on Friday, tracking a drop in crude and Chicago Board of Trade soyoil prices.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell to 2,713 ringgit ($652.48) a tonne in early trade.
“Palm oil prices fell in tandem with weak external markets and lower crude oil prices,” a Kuala Lumpur-based trader told Reuters.
CBOT’s soyoil contract fell 1.1%, as farmer selling offset support from Wednesday’s bullish U.S. quarterly stocks report and strong weekly export sales.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil, which fell over 1% on Friday over worsening demand prospects due to the COVID-19 pandemic, also weighed down prices.
Cheaper crude oil makes palm oil a less attractive feedstock for biofuels.
Palm oil may revisit its Sept. 30 low of 2,708 ringgit per tonne, as it could have completed a bounce from this level, said Reuters technical analyst Wang Tao.
* Oil prices fell nearly 1%, extending losses into a second day as rising production of crude comes amid a worsening COVID-19 pandemic, which threatens to bring more restrictions on movement and consumption that will likely hit demand for fuel.
* Asian markets were little changed, as a U.S. stimulus deal remained out of reach and investors waited on fresh U.S. employment data for a read on the economic toll from the coronavirus pandemic.
DATA/EVENTS (GMT) 0130 Australia Retail Sales MM Aug 0900 EU HICP Flash YY Sept 0900 EU HICP-X F&E Flash YY Sept 1230 US Non-Farm Payrolls Sept 1230 US Unemployment Rate Sept 1230 US Average Earnings YY Sept 1400 US Factor Orders MM Aug 1400 US U Mich Sentiment Final Sept ($1 = 4.1580 ringgit) (Reporting by Fathin Ungku; Editing by Vinay Dwivedi)
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