Malaysian palm oil futures inched lower on Friday and are on track for a second weekly loss, weighed down by weaker rival Dalian oils, though firmer crude oil capped the decline.
The benchmark palm oil contract (FCPOc3) for September delivery on the Bursa Malaysia Derivatives Exchange was down 14 ringgit, or 0.31%, at 4,492 ringgit ($1,106.40) a metric ton in early trade. The contract has fallen 1.4% so far this week.
FUNDAMENTALS
* Dalian's most-active soyoil contract (DBYcv1) fell 0.31%, while its palm oil contract CME:CPO1! shed 1.05%. The Chicago Board of Trade (BOcv1) is closed for a public holiday.
* Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
* Oil prices rose slightly before a long holiday weekend in the U.S. as wary optimism held over efforts to make peace in the Middle East between the United States and Iran. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* The ringgit FX_IDC:USDMYR, palm's currency of trade, strengthened 0.42% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
* India's palm oil imports in June fell to their lowest in 14 months as subdued demand and a narrowing discount to rival oils prompted buyers to cut purchases, five dealers said.
* Palm oil may test support at 4,485 ringgit per metric ton; a break below this level could open the way toward 4,440 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Stocks made a mixed start to the Asian trading session on Friday after a lukewarm U.S. jobs report poured cold water on the prospect of an imminent rate hike from the Federal Reserve. MKTS/GLOB
DATA/EVENTS
0750 France S&P Services, Composite PMI Jun
0755 Germany S&P Services, Composite Final PMI Jun
0800 EU S&P Services, Composite Final PMI Jun
0830 UK S&P Global PMI Composite Jun
0830 UK Reserve Assets Total Jun
($1 = 4.0600 ringgit)