KUALA LUMPUR (Reuters) - Malaysian palm oil futures edged down at the midday break on Wednesday, as a stronger ringgit and overnight losses in U.S. soyoil prices weighed.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was last down 0.4% at 2,169 ringgit ($520.02) per tonne around noon.
Palm oil may retest a support at 2,160 ringgit per tonne, following its failure to break a resistance at 2,192 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
“The stronger ringgit coupled with overnight weakness in the soybean oil market caused palm to fall,” said a Kuala Lumpur based trader.
The ringgit, the currency which palm is traded in, rose 0.24% against the dollar, making the edible oil cheaper for foreign buyers.
U.S. soyoil futures on the Chicago Board of Trade fell 0.9% on Tuesday, but were last up 0.4% on Wednesday.
Chicago corn futures edged up on Wednesday to recover from their lowest in more than three months, buoyed after a U.S. crop tour forecast lower yields, while soybeans and wheat also gained
In other related edible oils, the September soyoil contract on the Dalian exchange last rose 0.2% on Wednesday, while the Dalian September palm oil contract was up 0.4%.
Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market.
($1 = 4.1710 ringgit)
($1 = 71.5430 Indian rupees)
($1 = 7.0537 Chinese yuan)
Reporting by Liz Lee and Emily Chow; editing by Rashmi Aich