Palm oil dips on softer rival oils, crude oil; export duty waiver in focus

JAKARTA, Oct 26 (Reuters) - Malaysian palm oil futures eased on Monday, tracking losses in Dalian palm olein and Chicago soyoil, while weaker crude oil prices further weighed on sentiment, with the market awaiting confirmation of Malaysia's proposed export duty waiver.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost 38 ringgit, or 0.79%, to 4,780 ringgit ($1,170.71) a metric ton by the midday break.

"The futures opened gap lower following weakness in energy prices and in related vegetable oil futures, mainly Dalian Palm olein and CBOT soybeans and soyoil. However, the main catalyst is the absence of any confirmation of an export duty waiver from Malaysia and market seen erasing the news premium from the palm oil prices," said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.

Dalian's most-active soyoil contract rose 0.09%, while its palm oil contract dropped 0.39%. Soyoil prices on the Chicago Board of Trade were down 1.02%.

Palm oil tracks rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices fell on Monday after surging last week to near six-month highs, amid hopes of easing hostilities between the United States and Iran, although persistent attacks on key producer Saudi Arabia by Yemen's Houthis kept investors wary.O/R

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Exports of Malaysian palm oil products for October 1-25 rose 46.9% to 1,303,703 metric tons from 887,557 metric tons shipped during September 1-25, cargo surveyor Intertek Testing Services said on Sunday.

The ringgit, palm's currency of trade, strengthened 0.02% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

($1 = 4.0830 ringgit)