SINGAPORE, June 18 (Reuters) - Malaysian palm oil futures slid more than 3% on Friday, hitting their lowest since early February, as rival U.S. soyoil slumped overnight and top buyer India put off plans to cut import taxes.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange fell 115 ringgit, or 3.4%, to 3,262 ringgit ($787.73) a tonne, down for a third straight session.
Palm has declined 10.8% so far in the week, adding to the previous week’s more than 11% slump.
“Palm is down because of CBOT (Chicago Board of Trade) soyoil’s limit fall last night,” said a Kuala Lumpur trader, referring to Friday’s fall.
U.S. soybean futures were on course for their biggest weekly drop in nearly seven years, weighed down by forecasts for crop-friendly weather and cooler temperatures in the Midwest crop belt. The soybean oil contract was up 0.8% after a 9.2% drop on Thursday.
Both soybean oil and palm oil on the Dalian Commodity Exchange dropped 3.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Prices were also weighed down by India’s move to put on hold a proposal to reduce import taxes on edible oils.
Palm oil may fall to 3,195 ringgit per tonne, driven by a wave C, Reuters analyst Wang Tao said. DATA/EVENTS (GMT) 0600 UK Retail Sales MM, YY May 0600 UK Retail Sales Ex-Fuel MM May FUNDAMENTALS * Oil prices fell for a second consecutive day as the dollar soared on the prospect of interest rate hikes in the United States, but were nevertheless on track to finish the week flat - only slightly off multi-year highs.
($1 = 4.1410 ringgit)
Reporting by Fathin Ungku; Editing by Subhranshu Sahu