Palm oil slides on profit-taking, still set for 3.6% weekly rise

KUALA LUMPUR: Malaysian palm oil futures fell on Friday on profit-taking ahead of a long weekend for Eid celebrations, but the contract was still set to clock a nearly 3.6% weekly rise.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 39 ringgit, or 1.81%, to 2,167 ringgit during early trade.

Palm oil climbed to its highest since April 20 in the previous session, and was set for its second week of gains.

The Malaysian bourse will be closed on May 25 and May 26.

FUNDAMENTALS
Travel restrictions to prevent the spread of COVID-19, the disease caused by the new coronavirus, are causing labour shortages at Malaysia's palm plantations, officials said.

Malaysia voiced its commitment to further strengthen diplomatic and trade ties with India, after the world's largest edible oil buyer renewed purchases of Malaysian palm oil, in a sign of improving relations between the two countries.

Dalian's most-active soyoil contract fell 0.66%, while its palm oil contract slipped 0.35%. Soyoil prices on the Chicago Board of Trade were also down 0.92%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may consolidate in a range of 2,140-2,203 ringgit per tonne for one or two days before seeking its next direction, Reuters technical analyst Wang Tao said.

MARKET NEWS
Hong Kong shares tumbled on Friday after Beijing moved to impose a new security law on the city after last year's pro-democracy unrest, risking fresh protests and further straining fast-deteriorating U.S.-China ties.