Vegoils: Palm oil drops 1 percent tracking soyoil losses

By Emily Chow

KUALA LUMPUR (Reuters) - Malaysian palm oil futures on Tuesday fell over 1 percent, the lowest in a week, pulled down by overnight losses in U.S. soyoil and lacklustre export data.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 1.2 percent at 2,302 ringgit ($568.82) a tonne, its sharpest drop in two weeks. The palm oil contract hit its lowest since June 27.

Trading volumes stood at 11,166 lots of 25 tonnes each at noon.

"Soyoil fell overnight, causing palm prices to come down but it is trying to hold on," said a Kuala Lumpur-based futures trader, referring to soyoil losses on the U.S. Chicago Board of Trade (CBOT).

 

Palm oil prices track the performance of other edible oils as they compete for a share in the global vegetable oils market.

Malaysia's tepid exports weighed on palm prices, the trader said, adding, "Our production in June isn't so great so the selling pressure is not there."

Malaysia's June exports of the edible oil dropped 10.3 percent from the previous month, independent inspection company AmSpec Agri Malaysia said, while cargo surveyor Societe Generale de Surveillance said exports plunged 11.8 percent.

Palm oil faces a resistance at 2,348 ringgit per tonne. It may consolidate in the range of 2,322-2,348 ringit or retrace to a support at 2,290 ringgit, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.

In other related oils, the Chicago December soybean oil contract declined 1.2 percent on Monday and was last down 0.3 percent on Tuesday.

Meanwhile, the September soybean oil on China's Dalian Commodity Exchange dipped as much as 0.04 percent and the Dalian September palm oil contract dropped up to 0.1 percent.

(Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)