CORRECTED-VEGOILS-Palm falls over 1% on cheaper rivals, slide in crude oil

  • Reuters
  • Commodities News
CORRECTED-VEGOILS-Palm falls over 1% on cheaper rivals, slide in crude oil
Credit: © Reuters.

(Corrects milestone in paragraph 1 and 4)

SINGAPORE, Nov 13 (Reuters) - Malaysian palm oil futures fell on Friday after four days of gains, tracking losses in rival oils on the Chicago Board of Trade and the Dalian Commodity Exchange, with a weaker crude oil also weighing on prices.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 1.1% to 3,355 ringgit ($811.96) a tonne during early trade.

"It's tracking weakness from external markets," a Kuala Lumpur-based trader told Reuters, referring to palm's rival oils and crude oil. "Plus, it is correcting over-buying in the week," the trader said.

The contract rose for four consecutive days during the week and is set to record weekly a gain of 3.9%.

Dalian's most-active soyoil contract DBYc3 fell 0.2%, while its palm oil contract DCPc3 fell 0.4%. Soyoil prices on the Chicago Board of Trade BOc1 fell 0.5%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Meanwhile, worries about the global economy and near-term demand dragged crude oil prices lower on Friday, making palm a less attractive feedstock for biodiesel. O/R

Palm oil may rise into a range of 3,426-3,474 ringgit per tonne, as suggested by a projection analysis, Reuters analyst Wang Tao said. TECH/C

FUNDAMENTALS

* Chicago Board of Trade soybean futures pulled back on Thursday, a session after they hit their highest level in about 4-1/2 years, and corn futures retreated from their highest in more than a year. GRA/

MARKET NEWS

* Stocks in Asia fell, following on from selloffs in the United States and Europe as investors feared the economic impact of an accelerating rise in coronavirus infections. MKTS/GLOB

DATA/EVENTS (GMT) 0745 France CPI (EU Norm) Final MM, YY Oct 1000 EU

GDP Flash Estimate QQ, YY Q3 1500 US

U Mich Sentiment Prelim

Nov ($1 = 4.1320 ringgit)

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