Malaysian palm oil futures traded lower on Monday, paring the previous session’s gains, as weakness in Dalian palm oil and crude oil prices weighed on sentiment.
The benchmark palm oil contract 
FCPO1! for September delivery on the Bursa Malaysia Derivatives Exchange lost 44 ringgit, or 1.1%, to 3,967 ringgit ($941.39) a metric ton by the midday break.
“The futures is tracking external Dalian palm oil and crude oil performance while waiting for new lead,” a Kuala Lumpur-based trader said.
Dalian’s most active soyoil contract (DBYcv1) fell 0.32%, while its palm oil contract CPO1! dropped 0.69%. Soyoil prices on the Chicago Board of Trade (CBOT) 
ZL1! rose 0.42%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices fell on Monday as an easing of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August improved supply expectations amid persistent uncertainty over the outlook for global demand. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit 
USDMYR, palm’s currency of trade, strengthened 0.28% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Cargo surveyors estimated exports of Malaysian palm oil products for June 1-25 to have risen between 6.6% and 6.8% month-on-month.
Malaysia has lowered its July crude palm oil reference price, a change that reduces the export duty to 8.5% from 9.5% in June, a circular on the Malaysian Palm Oil Board website showed.
Palm oil FCPO1! may break resistance at 4,017 ringgit per metric ton and rise toward the 4,049-4,066 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
Thomson Reuterscpo
($1 = 4.2140 ringgit)