KUALA LUMPUR: Malaysian palm oil futures extended declines on Tuesday, weighed down by weakness in rival oils but robust export data capped the losses.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell RM38, or 0.88 per cent, to RM4,275 (US$993.26) a metric tonne by the midday break.
The market is being pressured by overnight weakness in Chicago soyoil and lower Dalian palm olein prices, David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd, said.
"However, a strong export pace that is seen so far is keeping the losses limited," he said.
Cargo surveyors, AmSpec Agri Malaysia and Intertek Testing Services, estimate exports of Malaysian palm oil products had risen between 0.8 per cent and 1.1 per cent in September while exports were seen rising between 13.6 per cent and 18.9 per cent during Oct. 1-10 from a month ago.
Cargo surveyors are expected to release Malaysian palm oil export estimates for Oct. 1-15 later in the day.
Dalian's most-active soyoil contract fell 0.75 per cent, while its palm oil contract slid 1.21 per cent. Soyoil prices on the Chicago Board of Trade were down 0.43 per cent.
Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.
Oil prices slid 3 per cent in early Asian trade after a media report said Israel is willing not to strike Iranian oil targets, which eased fears of a supply disruption, and after OPEC lowered its outlook for global oil demand growth in 2024 and 2025.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.3 per cent against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil may fall to RM4,206 per metric ton, as it failed again to break resistance at RM4,406, Reuters technical analyst Wang Tao said.