Palm oil slips on profit-taking, weaker Chicago soyoil

Malaysian palm oil futures fell on Thursday on profit-taking and weakness in rival Chicago soyoil, as prices consolidated after a recent uptick.

The benchmark palm oil contract FCPO1! for August delivery on the Bursa Malaysia Derivatives Exchange slid 28 ringgit, or 0.69%, to 4,006 ringgit ($851.25) per metric ton by the midday break.

Malaysia palm oil futures were seen lower on profit-taking following weakness in Chicago Board of Trade soyoil futures and an adjustment of prices after a strong rise recently, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

"The weakness in crude oil and ultra-low sulfur diesel prices is also a concern for palm oil as it has weakened the biofuel margins," Bagani said.

Dalian's most-active soyoil contract (DBYcv1) fell 0.76%, while its palm oil contract CPO1! lost 1.02%. Soyoil prices on the Chicago Board of Trade ZL1! were down 1.39%.

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

Oil prices were mostly stable on Thursday as the markets await U.S. crude oil stockpile data, though resilient U.S. economic activity pointed to borrowing costs staying higher for longer in a potential blow to demand. O/R

At 0330 GMT, Brent BRN1! futures dipped 4 cents or 0.05% to $83.56 a barrel.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit USDMYR, palm's currency of trade, weakened 0.17% against the dollar, making the commodity less expensive for buyers holding the foreign currency.

Palm oil may retrace into a range of 3,949 ringgit to 3,969 ringgit per metric ton, as it faces strong resistance at 4,025 ringgit, Reuters technical analyst Wang Tao said. TECH/C