Palm oil trades lower after sell-off in rival soyoil
Updates with midday prices
By Mayank Bhardwaj
NEW DELHI, Sept 9 (Reuters) -Malaysian palm oil futures fell on Monday after a sell-off in rival soyoil, while themarket awaits the Malaysian Palm Oil Board's widely-watched data on output and inventories.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 6 ringgit, or 0.15%, at 3,892 ringgit ($894.10) a metric ton by the midday break.
Crude palm oil futures are trading lower after a sell-off in soyoil in Chicago, said Anilkumar Bagani, research head at Sunvin Group, a Mumbai-based vegetable oil brokerage.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly palm oil data on Tuesday, Sept. 10.
Malaysia's palm oil inventories are expected to have climbed to a six-month high by the end ofAugust due to lacklustre export demand, a Reuters survey showed.
The country'spalm oil exports for August are seen at 1,376,412 tons, according to Amspec Agri.
Indonesia, the biggest palm oil exporter, plans to lower export duties to improve competitiveness and raise farmers' income.
Exports of Malaysian palm oil products fell 9.9% to 1,445,442 tons in August from 1,604,578 tons in July, cargo surveyor Intertek Testing Services said.
Oil futures jumped during Asiantrade on Monday as a potential hurricane system approached the U.S. Gulf Coast, and as markets recovered from a sell-offfollowing weaker-than-expected U.S. jobs data on Friday. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil FCPOc may retest support at 3,886 ringgit per ton, a break below which could trigger a fall to 3,856 ringgit, Reuters technical analyst Wang Tao said. TECH/C
Asian share markets slipped on Monday as worries about U.S. and Chinese growth weighed on sentiment, though U.S. and European stock futures did manage a bounce while bond yields came off their lows. MKTS/GLOB
($1 = 4.3530 ringgit)
Reporting by Mayank Bhardwaj; Editing by Rashmi Aich and Sonia Cheema
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