VEGOILS-Palm oil gains 1% as tight supply outlook offsets export slump
Today Online (17/11/2020) - KUALA LUMPUR, Nov 17 - Malaysian palm oil futures climbed 1% on Tuesday as the market speculated on lower production this month, stoking concerns of tight supply, though a sharp drop in exports capped gains.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 1.22% to 3,323 ringgit ($809.30) a tonne during early trade, after closing lower in the previous two sessions.
FUNDAMENTALS
* The Southern Palm Oil Millers Association estimated that production during Nov. 1-15 fell 16% on-month, according to traders.
* Palm oil imports into the European Union and Britain in the 2020/21 season totalled 2.31 million tonnes by Nov. 12, up 7% from the previous season, official EU data showed on Monday.
* However, Malaysia's exports during Nov. 1-15 fell between 11% and 14% from the same period in October with a drop in shipments to the Indian subcontinent, according to data released by cargo surveyors on Monday.
* Dalian's most-active soyoil contract rose 0.7%, while its palm oil contract gained 1%. Soyoil prices on the Chicago Board of Trade were up 1%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may stabilize around a support at 3,292 ringgit per tonne and bounce toward 3,365 ringgit, as suggested by a projection analysis, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian stocks cautiously pushed further into record territory on Tuesday, and oil edged higher after U.S. benchmarks were pepped up by news of another promising coronavirus vaccine.
DATA/EVENTS
1330 US Import Prices Oct
1330 US Export Prices Oct
1330 US Retail Sales Oct
1415 US Industrial Production Oct
1500 US Business Inventories MM Sep
1400 Bank of England Governor Andrew Bailey speaks at
The City UK's National Conference 2020
1600 ECB President Christine Lagarde participates in an
online Q&A during the Bloomberg New Economy Forum REUTERS
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