Palm oil falls on Dalian losses, profit taking action
Updates with midday break prices, trader's comment on paragraph 3
By Dewi Kurniawati
JAKARTA, Sept 2 (Reuters) -Malaysian palm oil futures fell on Monday, weighed down by profit taking and a fall in the Dalian palm oil contract.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 38 ringgit, or 0.96%, to 3,939 ringgit ($909.49) a metric ton by the midday break.
"The benchmark is having a correction from profit taking after recent rally, and tracking Dalian palm oil fall," a Kuala Lumpur-based trader said.
Dalian's most-active soyoil contract DBYcv1 fell 0.54%, while its palm oil contract DCPcv1 dropped 1.27%. The Chicago Board of Trade BOcv1 is closed for a holiday.
Palm oil tracks price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia's August palm oil exports are seen at 1,376,412 metric tons, according to Amspec Agri.
Exports of Malaysian palm oil products for August fell 9.9% to 1,445,442 metric tons from 1,604,578 metric tons shipped in July, cargo surveyor Intertek Testing Services said on Saturday.
Indonesia raised its crude palm oil (CPO) reference price for September to $839.53 per metric ton from $820.11 in August, a trade ministry regulation showed on Friday.
Traders are also moving cautiouslyas key importer India is mulling an import tax increase on vegetable oils, which could hit demand for palm oil.
The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.28% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Oil prices extended losses on Monday on expectations for higher OPEC+ production starting in October and as signs of sluggish demand in China and the U.S., the world's two largest oil consumers, raised concerns about future consumption growth.O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil FCPOc3 may test resistance at 4,023 ringgit per metric ton, a break above could open the way towards 4,122 ringgit, according to Reuters' technical analyst Wang Tao.
($1 = 4.3310 ringgit)
Reporting by Dewi Kurniawati; Editing by Mrigank Dhaniwala and Sumana Nandy
For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01.
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11.
Vegetable oils OILS/ASIA1
Malaysian palm oil exports SGSPALM1
CBOT soyoil futures 0#BO:
CBOT soybean futures 0#S:
Indian solvent SOLVENT01
Dalian Commodity Exchange DC/MENU
Dalian soyoil futures 0#DBY:
Dalian refined palm oil futures 0#DCP:
Zhengzhou rapeseed oil 0#COI:
European edible oil prices/trades OILS/E
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