VEGOILS-Palm oil slips with traders eyeing export estimates
KUALA LUMPUR, Jan 31 (Reuters) - Malaysian palm oil futures fell on Friday following the two-day Lunar New Year holiday, as the market awaits export estimates, although firmer rival Chicago soyoil and crude oil prices and a weaker ringgit capped the losses.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange slid 16 ringgit, or 0.37%, to 4,264 ringgit ($965.80) a metric ton by 0334 GMT.
The contract has gained about 1.14% so far this week.
FUNDAMENTALS
Cargo surveyors are expected to release Malaysian palm oil export estimates for January later on Friday.
Oil prices rose on Friday as markets weigh the threat of tariffs by U.S. President Donald Trump on Mexico and Canada, the two largest crude exporters to the U.S., that could take effect this weekend.
Brent crude futures LCOc1 for March, which expires on Friday, gained 44 cents at $77.31 a barrel at 0320 GMT. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.18%. The Dalian Commodity Exchange is closed from Jan. 28 to Feb. 4 for the Lunar New Year holidays.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
The ringgit MYR=, palm's currency of trade, weakened 0.62% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil may test resistance at 4,315 ringgit per metric ton, a break above which could open the way towards 4,364 ringgit to 4,425 ringgit range, Reuters technical analyst Wang Tao said.
MARKET NEWS
Asian shares wavered on Friday, weighed down by the return of tech-heavy South Korean stocks from holidays, but relatively strong earnings from U.S. tech giants kept risk sentiment intact while tariff threats pushed the dollar and gold prices higher.
