Palm slides on rival oil weakness and lower crude prices
KUALA LUMPUR, Oct 28 (Reuters) -Malaysian palm oil futures fell for a second consecutive session on Monday, tracking weakness in rival edible oils and lower crude oil prices.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 41 ringgit, or 0.9%, to 4,495 ringgit a metric ton in early trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract DBYcv1 fell 1.57%, while its palm oil contract DCPcv1 lost 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 2.15%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
* Oil prices tumbled more than $3 a barrel after Israel's retaliatory strike on Iran over the weekend bypassed Tehran's oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The ringgit MYR=, palm's currency of trade, weakened 0.46% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
MARKET NEWS
* The yen hit a three-month low as Japan's ruling party lost its parliamentary majority, while oil tumbled after Israel's weekend strike on Iran bypassed oil or nuclear targets.MKTS/GLOB
DATA/EVENTS
No major data/events expected for Monday.
Reporting by Ashley Tang; Editing by Subhranshu Sahu
For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E
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