VEGOILS-Palm oil falls as traders brace for cues from industry conference

Credit: REUTERS/RAJENDRA JADHAV

SINGAPORE, March 4 (Reuters) - Malaysian palm oil futures dropped on Monday as traders maintained a cautious stance and looked ahead to cues from an industry conference that started earlier in the day, while a stronger ringgit also weighed.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange fell 13 ringgit, or 0.33% to 3,953 ringgit ($836.26) a metric ton in morning trade.

FUNDAMENTALS

* The 35th Palm & Lauric Oils Price Outlook Conference & Exhibition will be on from March 4-6 in Kuala Lumpur, with traders awaiting cues on rival soyoil, world supply-demand, price outlook of palm oil, and potential challenges of the Malaysian palm oil industry.

* Dalian's most-active soyoil contract DBYcv1 rose 0.3%, while its palm oil contract DCPcv1 was down 0.13%. Soyoil prices on the Chicago Board of Trade BOcv1 slid 0.18%.

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

* The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.36% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.

* Palm oil may retest resistance at 3,992 ringgit per metric ton, a break above could lead to a gain to 4,022 ringgit, said Reuters technical analyst Wang Tao. TECH/C

MARKET NEWS

* All eyes will be on Federal Reserve Chair Jerome Powell when he testifies before lawmakers on Wednesday and Thursday, though analysts assume he will stay in wait-and-see mode on policy given recent upside surprises on inflation. MKTS/GLOB

* Oil prices rose after OPEC+ members agreed to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, largely in line with market expectations. O/R

DATA/EVENTS (GMT)

1600 US Fed's Harker speaks --

2330 Japan CPI Tokyo Feb

($1 = 4.7270 ringgit)

cpo https://tmsnrt.rs/3uWr9MQ

(Reporting by Cassandra Yap; Editing by Sherry Jacob-Phillips)

((cassandra.yap@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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