Malaysian palm oil futures fell further during the midday break on Monday, dragged down by weaker rival oils on the Dalian and Zhengzhou Commodity Exchanges.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange traded 73 ringgit lower, or 1.81%, at 3,967 ringgit ($852.20) per metric ton on the midday break.
Dalian’s most-active soyoil contract fell 0.87%, while its palm oil contract slid 1.67%. Soyoil prices on the Chicago Board of Trade is closed on Monday for Labor Day holiday.
“The new week has started with CBOT on holiday. The futures opened gap lower and trading down following sharply lower Dalian’s Palm Olein and Soy oil and Zhengzhou Commodity Exchange (ZCE) Rapeseed oil futures,” Anilkumar Bagani, research head, Sunvin Group India, said.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Indonesia has set its crude palm oil reference price for the Sept. 1-15 period at $805.20 per ton, which put the CPO export tax and levy at $33 per ton and $85 per ton, respectively, for the period.
Exports of Malaysian palm oil products for August fell 3% to 1,201,488 tons from 1,238,438 tons shipped during July, cargo surveyor Intertek Testing Services said.
According to independent inspection company AmSpec Agri, exports fell 0.4% to 1,171,998 tons, from 1,176,912 tons shipped in July.
Palm oil FCPOc3 may retest a resistance at 4,071 ringgit per ton, with a good chance of breaking above this level and rising into 4,104-4,125 ringgit range, according to Reuters analyst Wang Tao.