23.09.2020 (economictimes.indiatimes.co) - KUALA LUMPUR: Malaysian palm oil fell for a third straight session on Wednesday, tracking weakness in rival edible oils on the Dalian exchange and crude prices, while concerns over fresh COVID-19 lockdowns in Europe and rising output also weighed on sentiment.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 50 ringgit, or 1.69%, to 2,907 ringgit ($702.51) a tonne in early trade.
Palm has already declined 5.5% so far this week, as possible lockdowns in some European states dragged global markets.
The Malaysian Palm Oil Association on Tuesday evening estimated output for the first 20 days of September to rise 5%, traders said.
Dalian's most-active soyoil contract fell 2.75%, while its palm oil contract fell 3.18%. Soyoil prices on the Chicago Board of Trade were down 0.48%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices fell more after an industry group reported a rise in U.S. crude inventories against expectations for a decline, adding to worries about demand that led to a steep selloff earlier in the week.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Palm oil may bounce into a range of 3,003-3,039 ringgit per tonne, as it has stabilized around a support of 2,910 ringgit, Reuters technical analyst Wang Tao said.
Asian stocks were set to open higher after tech-fueled Wall Street gains although focus is shifting to renewed U.S.-Sino tensions, which could weigh on investor sentiment.
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