VEGOILS-Palm falls over 1% on higher output forecast, slow exports
24.08.2021 (www.todayonline.com) - KUALA LUMPUR, Aug 24 - Malaysian palm oil futures fell more than 1% on Tuesday after two straight sessions of gains, weighed down by industry estimates of an increase in August production amid weak exports.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 51 ringgit, or 1.20%, to 4,264 ringgit ($1,011.39) a tonne in early trade.
FUNDAMENTALS
* The Southern Peninsula Palm Oil Millers' Association forecast an 11.5% month-on-month rise in Aug. 1-20 production, traders said on Monday.
* Malaysia's exports during Aug. 1-20 fell 9.9% from the same period in July, cargo surveyor Societe Generale de Surveillance said on Monday.
* The ringgit, palm's currency of trade, rose 0.21% against the dollar, making the commodity more expensive for holders of foreign currency.
* Dalian's most-active soyoil contract rose 0.5%, while its palm oil contract gained 1.1%. Soyoil prices on the Chicago Board of Trade were down 0.1%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Refinitiv Agriculture Research said in a note on Monday the contract might rise towards resistance at 4,360-4,380 ringgit a tonne this week, with support at 4,050-4,070 ringgit a tonne, rebounding from last week's sharp loss on bargain-buying.
* Palm oil may break a resistance at 4,358 ringgit per tonne and rise into a range of 4,405-4,464 ringgit, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian stocks rose on an extended bounce on Wall Street as investors drew comfort from full approval granted to the Pfizer/BioNTech vaccine and on easing worries of an imminent tapering of stimulus by the Federal Reserve.
DATA/EVENTS
0600 Germany GDP Detailed QQ SA Q2
0600 Germany GDP Detailed YY NSA Q2
1400 US New Home Sales-Units July
($1 = 4.2160 ringgit) REUTERS