Palm retreats tracking US soyoil futures

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KUALA LUMPUR (June 20): Malaysian palm oil futures fell in early trade on Thursday, reversing some of the previous session's gains, dragged by losses in rival oilseed futures.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.7% at RM2,032 (US$489.28) per tonne at 0410 GMT.

US soyoil prices on the Chicago Board of Trade fell 0.2% on Thursday, while the Dalian Commodity Exchange soyoil contract declined 0.3%.

The ringgit strengthened as much as 0.48%, weighing on palm oil prices.

FUNDAMENTALS
* US soybean futures edged lower for a second straight session, though losses were checked by concerns that wet weather across a key producing region will prevent farmers from completing their planting.

* Oil prices rose over 1% as official data showed US crude stocks fell more than expected and as OPEC and other producers finally agreed a date for a meeting to discuss output cuts.

MARKET NEWS
* A gauge of global stock markets edged near this year's peak while benchmark US Treasury yields and the dollar dropped after the Federal Reserve signalled possible interest rate cuts later this year.

* The dollar was on the defensive after the Fed signalled it was ready to lower interest rates to combat growing global and domestic risks.

* The S&P 500 approached a record high on Wednesday after the Fed signalled potential interest cuts later this year, reassuring investors worried that the US-China trade war could stall economic growth.