VEGOILS-Palm oil snaps 4-day rally as USDA reports upbeat soybean stock estimates
10.02.2021 (www.todayonline.com) - KUALA LUMPUR, Feb 10 - Malaysian palm oil futures snapped a four-day rally on Wednesday, as the U.S. Department of Agriculture (USDA) reported higher than expected soybean stocks estimates, but hopes of higher exports during Feb. 1-10 limited losses.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 12 ringgit, or 0.34%, to 3,560 ringgit ($880.10) a tonne during early trade.
Investors are awaiting Malaysian Palm Oil Board data for January supply and demand due later in the day for more direction.
Cargo surveyors are also scheduled to release Feb. 1-10 export data, which the market is speculating to rise 33% to 45% monthly .
FUNDAMENTALS
* USDA minimally trimmed its U.S. soybean ending stocks for the 2020/21 marketing year to 120 million bushels, down from January and higher than analysts' expectations.
* Soyoil prices on the Chicago Board of Trade were down 0.3%. Dalian's most-active soyoil contract and its palm oil contract both gained 1%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Bursa Malaysia will be closed for trading after the morning session on Thursday, and will also be closed on Friday for Lunar New Year.
* Palm oil may retreat to 3,503 ringgit per tonne, as it faces a strong resistance at 3,584 ringgit, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian stocks inched higher, as upbeat Wall Street earnings and optimism about a global recovery supported sentiment, although concerns about the sustainability of a recent risk rally are likely to cap gains.
DATA/EVENTS (GMT)
0130 China PPI, CPI YY Jan
0700 Germany HICP Final YY Jan
1900 US Federal Reserve Chairman Jerome Powell
speaks before a virtual Economic Club of New York event
($1 = 4.0450 ringgit) REUTERS