VEGOILS-Palm oil slips 1% on weaker rival oils, concerns over rising output
18.03.2021 (in.investing.com) - KUALA LUMPUR, March 18 (Reuters) - Malaysian palm oil futures fell over 1% on Thursday, tracking weakness in soyoil and crude, while expectations of a recovery in production also weighed on sentiment.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 65 ringgit, or 1.65%, to 3,873 ringgit ($943.02) a tonne in early trade.
Traders said they are anticipating a double-digit growth in production after industry groups forecast a sharp rise in output during March 1-15.
FUNDAMENTALS
* Malaysia has kept its April export duty for crude palm oil at 8%, though it raised the reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday. Dalian's most-active soyoil contract DBYcv1 fell 1.6%, while its palm oil contract DCPcv1 fell 0.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were unchanged.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices dropped for a fifth day after official data showed a sustained rise in U.S. crude and fuel inventories, while the ever-present pandemic clouded the demand outlook. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
MARKET NEWS
* Asian shares and U.S. stock futures rose on Thursday after the Federal Reserve committed to maintaining accommodative monetary policy and projected a rapid jump in U.S. economic growth this year as the COVID-19 crisis eases. MKTS/GLOB
DATA/EVENTS
1200 UK
BOE Bank Rate
March
1200 UK
GB BOE QE Corp
March
1230 US
Initial Jobless Claim
weekly
1230 US
Philly Fed Business Index March
-- Japan Bank of Japan holds Monetary Policy Meeting
($1 = 4.1100 ringgit)
($1 = 4.1070 ringgit)