06.09.2021 (www.hellenicshippingnews.com) - Malaysian palm oil futures ticked up for a third straight session on Monday, tracking rival Dalian oils, although expectations of a jump in stockpile and production capped gains.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or 0.53%, to 4,333 ringgit ($1,045.86) a tonne by the midday break.

Malaysia’s end-August palm oil inventories jumped 16.3% from July to 1.74 million tonnes, its highest in over a year, according to a Reuters survey on Friday.

Production rose 11.2% to 1.7 million tonnes, while exports slumped 12.3% to 1.24 million tonnes, the survey showed.

The projected jump in inventories is sharper than historical trends of a 3% rise in August, but still far below the historical average of 2 million tonnes, said Ivy Ng, regional head of plantations research at CGS-CIMB Research in a note.

“We think the slump in exports in August may be temporary due to the upcoming mooncake and Diwali festivals.”

The market is awaiting the Malaysian Palm Oil Board to release August supply and demand data on Sept. 10.

Malaysia, the world’s second-largest producer of palm oil, is facing a perfect storm of production headwinds that will likely drag global stocks to their lowest level in five years.

Crude palm oil prices are projected to remain firm at 3,500-4,000 ringgit a tonne in Sept, Ng said.

Dalian’s most-active soyoil contract DBYcv1 rose 1%, while its palm oil contract DCPcv1 was up 1.5%. The Chicago Board of Trade BOcv1 was closed for a public holiday.

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 retreat into a range of 4,155 ringgit to 4,251 ringgit per tonne, following its failure to break a resistance at 4,358 ringgit, Reuters technical analyst Wang Tao said.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Ramakrishnan M.)

https://www.hellenicshippingnews.com/palm-oil-tracks-rivals-higher-rising-stock-outlook-weighs/