VEGOILS-Palm falls for a second session on weaker crude oil, stronger ringgit

Reuters11:03
VEGOILS-Palm falls for a second session on weaker crude oil, stronger ringgit

JAKARTA, Feb 23 (Reuters) - Malaysian palm oil futures extended losses to a second session on Monday, tracking weakness in crude oil while a stronger ringgit added pressure to the contract.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange lost 21 ringgit, or 0.51%, to 4,071 ringgit ($1,047.34) a metric ton in early trade.

FUNDAMENTALS

* Soyoil prices on the Chicago Board of Trade BOc2 were rising 0.37%. The Dalian Commodity Exchange is closed for the Lunar New Year holidays.

* Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

* Chicago soybean futures slid on Monday, falling further from last week's three-month high as uncertainty over U.S. tariffs added pressure, after the Supreme Court struck down President Donald Trump's sweeping tariffs. GRA/

* Exports of Malaysian palm oil products for February 1-20 were estimated to fall between 8.9% and 12.6%, according to data from cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia.

* Oil prices slid 1% on Monday with the U.S. and Iran headed for a third round of nuclear talks, easing concerns about a potential conflict, while President Donald Trump created uncertainty for global growth and fuel demand with a new round of tariff hikes.O/R

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

* The ringgit MYR=, palm's currency of trade, strengthened 0.33% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

* Palm oil FCPOc3 may test a support at 4,064 ringgit per metric ton, a break below which could trigger a fall to 3,999 ringgit.TECH/C

MARKET NEWS

* Wall Street futures and the dollar slid in Asia on Monday as confusion over U.S. tariffs revived the "sell America" trade, while confidence in the entire AI sector was set to be tested by results from tech-diva Nvidia this week. MKTS/GLOB

DATA/EVENTS

0900 Germany Ifo Business Climate, Curr Conditions, Expectations New Feb

1500 US Factory Orders MM Dec

($1 = 3.8870 ringgit)

cpo https://tmsnrt.rs/3OmFxYe

(Reporting by Bernadette Christina; Editing by Janane Venkatraman)

((Bernadette.christina@Thomsonreuters.com))

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