12/12/2022 (Nasdaq), Jakarta - Malaysian palm oil futures dropped on Monday tracking weakness in rival oils, even as data showed firmer palm oil exports for the first 10 days of December.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange lost 4.51% to 3,815 ringgit ($863.12) per tonne in early trade.

FUNDAMENTALS

* Dalian's most active soyoil contract DBYv1 dropped 3.07%, while its palm oil contract DCPv1 plummeted by 6.16%. Soyoil prices on the Chicago Board of Trade BOc2 fell 0.58%.

* Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.

* Exports of Malaysian palm oil products for Dec. 1-10 rose 5.6% from the same period a month earlier, cargo surveyor Intertek Testing Services said on Saturday, while AmSpec Agri Malaysia reported a 14.3% increase.

* The world's top palm oil exporter Indonesia may start implementing a programme to use biodiesel with 35% mix of palm oil-based fuel in January, an official said on Friday.

* Palm oil looks neutral in a narrow range of 3,945-4,029 ringgit a tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares fell, while the dollar drifted higher at the start of a hectic week, as markets awaited a flurry of rate decisions from the U.S. Federal Reserve, the European Central Bank and others. MKTS/GLOB

* Oil prices rose more than 1% in early Asian trade, as a key Canada-United States crude pipeline stayed shut while Russian President Vladimir Putin threatened to cut production in retaliation against a Western price cap on Russian oil exports. O/R

DATA/EVENTS (GMT)

0700 UK GDP Est 3M/3M

0700 UK GDP Estimate MM, YY

0700 UK Manufacturing Output MM

($1 = 4.4200 ringgit)

Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-drops-as-sharp-decline-in-rival-oils-weigh