MARKET DEVELOPMENT
VEGOILS Palm extends fall on rival oil weakness, traders await output data
VEGOILS Palm extends fall on rival oil weakness, traders await output data
09.02.2022 (www.reuters.com) - JAKARTA, Feb 9 (Reuters) - Malaysian palm oil futures extended losses to a third session on Wednesday, dragged down by lower vegetable oil prices in China, while investors awaited official January production and export data due on Thursday.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 2.4% to 5,318 ringgit per tonne in early trading, adding to the 3.11% drop in the last two sessions.
Rival vegetable oil contracts on China's Dalian exchange continued their decline, with the most-active soyoil contract dropping 2.98%, while the palm oil contract for May delivery lost 3.61%.
Soyoil prices on the Chicago Board of Trade were down 0.63%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
FUNDAMENTALS
* Malaysia's palm oil stockpile at the end of January likely stayed flat, as both production and exports in the world's second-largest producer plunged to 11-month lows, a Reuters survey showed.
* India's attempts to lower edible oil prices ahead of important state elections have been ruined by a spike in global palm oil prices to record highs after Indonesia, the world's biggest supplier, moved to restrict exports. read more
* Grain markets are positioning ahead of world supply and demand forecasts from the U.S. Department of Agriculture (USDA) due later on Wednesday.
* Palm oil may fall further into a range of 5,174 ringgit to 5,247 ringgit per tonne, as it has escaped from the middle channel, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Oil prices nudged up on Wednesday following two sessions of losses after industry data showed an unexpected drop in U.S. crude and fuel stocks, offsetting concerns of a possible rise in supplies from Iran.
* Big Tech gave major U.S. stock indexes a boost on Tuesday and European shares ended largely unchanged as a sharp fall in oil prices took the shine off bumper profits from oil company BP .
DATA/EVENTS
No major data/events expected
Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu