VEGOILS-Palm extends losses to fourth day on cheaper rival oils, crude
Today Online (02/11/2020) - KUALA LUMPUR, Nov 2 - Malaysian palm oil futures fell on Monday for a fourth straight session, dragged by weakness in rival oils and crude, although losses were limited due to higher October exports.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 58 ringgit, or 1.9%, to 2,953 ringgit ($711.05) a tonne, its steepest daily fall in two weeks.
Palm gained 2.3% last week on concerns that supply of edible oils will be tight till first quarter of 2021 as a La Nina weather pattern hampers production.
FUNDAMENTALS
* Dalian's most-active soyoil contract slipped 1%, while its palm oil contract fell 1.2%. Soyoil prices on the Chicago Board of Trade were down 1.2%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices slumped more than 4% to the lowest levels since May on of a coronavirus-led drop in demand. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Meanwhile, cargo surveyors said on Saturday palm oil exports from Malaysia in October rose between 4% and 6% from September as shipments to the Indian subcontinent ticked up.
* Palm oil may retest a support at 2,986 ringgit per tonne, a break below which could cause a fall into the range of 2,901-2,944 ringgit, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian shares bounced off one-month lows on Monday on solid data from China showing factory activity expanded at its fastest pace in a decade.
DATA/EVENTS
0030 Japan Jaibun Bank Mfg PMI Oct
0030 Australia Building Approvals Sept
0145 China Caixin Mfg PMI Final Oct
0500 India IHS Markit Mfg PMI Oct
0850 France Markit Mfg PMI Oct
0855 Germany Markit/BME Mfg PMI Oct
0900 EU Markit Mfg Final PMI Oct
0930 UK Markit/CIPS Mfg PMI Final Oct
1445 US Markit Mfg PMI Final Oct
1500 US ISM Manufacturing PMI Oct REUTERS
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