Palm oil falls most in nearly a month on technical selling

Malaysian palm oil futures fell 4.8% on Friday to post their biggest drop in nearly a month due to technical selling after the contract broke support.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange ended lower for a fifth consecutive session, falling 4.8% to 3,658 ringgit ($890.89) a tonne, its biggest intraday drop since May 17.

The contract also posted its first weekly drop in three, plunging 11.4%.

“Prices are down due to long liquidation after they broke support,” a Kuala Lumpur-based trader told Reuters.

Prices were also dragged by weak rival oils elsewhere, the trader added.

Dalian’s most-active soyoil contract DBYcv1 fell 0.9%, while its palm oil contract DCPcv1 slipped 2.5%. Soyoil prices on the CBOT BOc2 slid 1.4%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Source: Reuters (Reporting by Fathin Ungku; editing by Uttaresh.V and Rashmi Aich)