(Updates with midday prices, adds quotes)
By Mei Mei Chu
KUALA LUMPUR, March 23 (Reuters) - Malaysian palm oil
futures hit a more than five-month low on Thursday tracking
losses in rival edible oils, while caution as investors gauged
the U.S. Federal Reserve's comments also weighed on sentiment.
The benchmark palm oil contract for June delivery
on the Bursa Malaysia Derivatives Exchange slid 31 ringgit, or
0.85%, to 3,633 ringgit ($821.76) a tonne by the midday break,
hitting its lowest since Oct. 14.
The market opened lower, mirroring a sharp overnight drop in
soybean oil, but buying interest appeared after the contract
touched the day's low of 3,597 ringgit, a Kuala Lumpur-based
trader said.
Dalian's most-active soyoil contract fell 1.8%,
while its palm oil contract eased 2.5%. Soyoil prices
on the Chicago Board of Trade ticked up after a 2.8%
overnight decline.
Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
Oil prices fell after Fed Chair Jerome Powell re-stated his
commitment to curbing inflation, including the possibility of
more interest rate rises. Lower crude oil prices make palm a
less attractive option for biodiesel feedstock. Palm oil may test a support at 3,615 ringgit per tonne, a
break below which could open the way towards 3,494-3,569 ringgit
range, Reuters technical analyst Wang Tao said. ($1 = 4.4210 ringgit)
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(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu and
Rashmi Aich)
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