August 21, 2019 / 3:34 AM / 2 months ago

Palm falls on ringgit strength, overnight soyoil losses

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.

A worker unloads palm oil fruit bunches from a lorry inside a palm oil mill in Bahau, Negeri Sembilan, Malaysia January 30, 2019. REUTERS/Lai Seng Sin/Files

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

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