Malaysian palm oil price hits 1-month low on weaker related oils

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives exchange was up 1.1% at 2,004 ringgit ($486.64) per tonne at the close of trade, after declining earlier on overnight losses in U.S. soyoil on the Chicago Board of Trade (CBOT).

KUALA LUMPUR: Malaysian palm oil futures extended losses on Monday to hit a one-month low, weighed down by weaker related oils and crude oil.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 0.47 percent at 2,109 ringgit ($510.41) a tonne, having earlier hit its lowest level since April 1 at 2,099 ringgit.

Monday was the third consecutive session of falls for the contract, which has declined 0.3 percent so far this month.

Palm oil may break through support at 2,110 ringgit per tonne and fall towards support at 2,083 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

"Dalian and soyoil prices are still weak," said a Kuala Lumpur-based futures trader, referring to related edible oils on China's Dalian Commodity Exchange and soyoil on the U.S. Chicago Board of Trade.

Weakness on energy markets also weighed on palm prices, said another trader.

Oil prices fell on Monday, extending a slump from Friday that ended weeks of rallying, after U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.

In other related oils, the Chicago May soybean oil contract declined 0.4 percent on Friday, but was up 0.04 percent on Monday.

Soybeans have been under pressure amid concerns about demand from top buyer China, which is locked in a trade row with the United States, and the spread of African swine fever in China's hog herd. Soy is a key feedstuff for hogs.

Meanwhile, the May soyoil contract on the Dalian Commodity Exchange fell 0.4 percent, and the Dalian May palm oil contract was also down 0.4 percent. - Reuters