Vegoils-Palm oil extends losses on weaker rival edible oils; focus on export data
Hellenic Shipping News (21/05/2021) - Malaysian palm oil futures fell on Thursday, extending the previous session’s sharp decline, as rival edible oils dropped due to profit-taking, while traders awaited a preliminary data for May exports to be released later in the day.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange slid 58 ringgit, or 1.35%, to 4,244 ringgit ($1,024.87) a tonne during early trade.
Palm fell for a second consecutive session after rallying 5% on Tuesday.
The market is now awaiting May 1-20 export data by cargo surveyors scheduled to be released later in the day.
FUNDAMENTALS
* Oil prices fell after a slump in the previous session, as rising U.S. stockpiles added to concerns about a hit to demand from surging coronavirus infections in Asia and possible U.S. rate hikes.
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Dalian’s most-active soyoil contract fell 3%, while its palm oil contract declined 2.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.9%, after falling 3% in the previous session.
* 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 seek a support at 4,195 ringgit per tonne and start a bounce thereafter, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Stock markets struggled for traction on Thursday after a jittery session on Wall Street where cryptocurrencies crashed and a hint of tapering talk from the U.S. Federal Reserve drove selling in the bond market and lifted the safe-haven dollar.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich)