Malaysian palm oil futures slipped on Thursday, after posting sharp gains in the previous session, pressured by weaker crude oil prices although higher exports in May limited losses.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slipped 6 ringgit, or 0.26%, to 2,275 ringgit ($522.87) at 0245 GMT.
Palm climbed 5.26% in the previous session to its highest close since April 10, boosted by estimates of a lower output this month in some parts of Malaysia.
Malaysia’s exports for May 1-25 rose between 5.1% and 9.8% from the month before, cargo surveyors said.
Oil prices fell after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.
Dalian’s most-active soyoil contract rose 0.84%, while its palm oil contract jumped 2.37%. Soyoil prices on the Chicago Board of Trade were down 0.29%.
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 rise to 2,342 ringgit per tonne, as it has cleared a resistance at 2,265 ringgit, Reuters technical analyst Wang Tao said.