Palm falls as ringgit strength offsets support from other oils

KUALA LUMPUR: Malaysian palm oil futures edged lower on Wednesday morning, as a stronger ringgit capped the support from gains in other edible oils.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was last down 0.6 per cent at 2,163 ringgit ($ 518.58) per tonne.

U.S. soyoil futures on the Chicago Board of Trade were last up 0.3 per cent, while the September soyoil contract on the Dalian exchange was last 0.1 per cent higher on Wednesday morning.

The ringgit, the currency which palm is traded in, rose 0.24 per cent against the dollar, making the edible oil cheaper for foreign buyers.

Palm oil may retest a support at 2,160 ringgit per tonne, following its failure to break a resistance at 2,192 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

Chicago corn futures ticked higher on Wednesday as the market recovered after two days of losses, with support from a U.S. crop tour forecasting lower yields.

Prices for Brent oil rose above $ 60 a barrel for the first time in over a week on Wednesday amid data that showed a larger-than-expected drawdown in U.S. crude inventories, but ongoing worries about a global economic recession capped gains.

Asian shares fell on Wednesday as fresh worries about a global recession led investors to dump risky assets, with U.S. President Donald Trump showing no signs of backing down in his trade war with China.

Financial shares led U.S. stocks lower on Tuesday to end a three-day rally as investors awaited comments from Federal Reserve Chair Jerome Powell at the end of the week.

The dollar was on the defensive on Wednesday, elbowed off a three-week peak by a reversal in U.S. yields as they headed south again ahead of a meeting of central bankers, at which the Federal Reserve is expected to give clues on further rate cuts.