Palm oil flat ahead of Malaysian export data, set for weekly gain
Updates with midday price, trader's comments
KUALA LUMPUR, July 19 (Reuters) -Malaysian palm oil futures were little changed on Friday as traders awaited export estimates for further cues, but looked set for a weekly gain.
The Bursa Malaysia Derivatives Exchange's benchmark palm oil contract FCPOc3 for October delivery was down 0.05% to 3,935 ringgit ($841.89) a metric ton by the midday break.
The contract has gained 0.5% so far this week, after falling 3.14% last week.
The market is trying to gauge the upside potential in July's production and the likely drop in stock levels due to higher exports, a Mumbai-based trader said.
"Palm oil export numbers have been quite robust so far this month," the trader added.
Cargo surveyors are expected to release Malaysian palm oil export estimates for July 1-20 on Saturday.
Dalian's most-active soyoil contract DBYcv1 gained 0.97%, while its palm oil contract DCPcv1 lost 0.48%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.52%.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Meanwhile, oil prices fell and were set for a second weekly decline, as a strong dollar and mixed economic signals weighed on investor sentiment. O/R
Brent crude LCOc1 was down 0.55% to $84.64 a barrel by 0516 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit MYR=, palm's currency of trade, weakened 0.19% against the dollar, making the commodity less expensive for buyers holding foreign currencies.
Malaysia maintained its August export tax for crude palm oil at 8.0% and raised its reference price, a circular on the Malaysian Palm Oil Board website showed.
Palm oil may break support at 3,913 ringgit per metric ton and fall into a range of 3,851-3,873 ringgit, Reuters technical analyst Wang Tao said.
($1 = 4.6740 ringgit)
Reporting by Danial Azhar and Rajendra Jadhav in Mumbai; Editing by Varun H K
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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