Malaysian palm oil futures extended losses to a second session on Thursday, tracking weakness in rival soyoil, amid jitters over a global economic slowdown.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange fell 80 ringgit, or 2.07%, to 3,776 ringgit ($833.74) a tonne during early trade.
For the week, palm is set for a 5% climb.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 fell 0.7%, while its palm oil contract DCPcv1 eased 0.2%. Soyoil prices on the Chicago Board of Trade BOcv1 extended a 2.2% overnight loss.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Malaysia’s financial markets will be closed on Friday for a national holiday.
* Palm oil may keep hovering below a strong resistance at 3,916 ringgit per tonne, or retrace towards 3,686 ringgit, as suggested by its wave pattern and a retracement analysis, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian stockmarkets were steady but fragile on Thursday, a day after their biggest drawdown in three months as investors weighed the risk of the Federal Reserve announcing a 100 basis point interest rate hike next week to tackle sticky inflation. /GLOB
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