VEGOILS-Palm oil hits one-week low on weaker soyoil, higher output outlook
17.03.2021 (in.investing.com) - KUALA LUMPUR, March 17 (Reuters) - Malaysian palm oil futures fell to a one-week low on Wednesday, tracking weakness in rival oils and on anticipation of improving production.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 13 ringgit, or 0.33%, to 3,882 ringgit ($942.46) a tonne during early trade.
Palm fell for a second straight session to its lowest since March 10.
FUNDAMENTALS
* Indonesia, the world's top palm oil producer, exported 2.86 million tonnes of palm oil and its products in January, up 19.6% from the same month last year, data from the Indonesia Palm Oil Association (GAPKI) showed. The Southern (NYSE: SO ) Peninsula Palm Oil Millers' association had forecast production during March 1-15 to rise 62% from the previous month, traders said on Tuesday.
* Dalian's most-active soyoil contract DBYcv1 fell 1.5%, while its palm oil contract DCPcv1 decline 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.2%.
* 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 3,895 ringgit per tonne, and bounce towards a zone of 3,965-4,052 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks were set to open mostly lower, following a sell-off in U.S. stocks, as investors awaited the Federal Reserve's meeting and whether the central bank will maintain near-zero interest rates amid the economy's post-pandemic recovery. MKTS/GLOB
DATA/EVENTS
1000 EU HICP Final MM, YY
Feb
1230 US Housing Starts Number Feb
1800 US Federal Open Market Committee announces
its decision on interest rates followed by statement
($1 = 4.1190 ringgit)