25/01/2023 (Nasdaq), Jakarta - Malaysian palm oil futures fell on Wednesday, its first trading day after the Lunar New Year holidays, tracking recent weakness in U.S. soyoil prices amid a lull in exports.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange fell 1.90% to 3,818 ringgit ($894.15) per tonne in early trading.

The Malaysian exchange was closed on Monday and Tuesday for the Lunar New Year holidays.

FUNDAMENTALS

* Malaysian palm oil exports for Jan. 1-20 fell 29% to 38% from the same period in December as shipments to key markets India and China tumbled, cargo surveyors said on Friday.

* Soyoil prices on the Chicago Board of Trade BOc2 were up 0.26%, after hitting their weakest level in over a month on Tuesday. The Dalian exchange is closed this week for the Lunar New Year celebration.

* Palm oil may edge up to a resistance at 3,980 ringgit per tonne before turning around and retesting support at 3,888 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* U.S. stock indexes closed mixed and the dollar slid a bit on Tuesday after companies warned of a tough year ahead along with some profit beats, while data showed U.S. business activity contracted for a troubling seventh straight month in January. MKTS/GLOB

* Crude oil prices rebounded on Wednesday on demand recovery hopes in top importer China following its exit from COVID-19 pandemic curbs after prices dropped in the previous session on concerns about global economic growth. O/R

DATA/EVENTS (GMT)

0500 Japan Chain Store Sales YY Dec

0500 Japan Leading Indicator Revised Nov

0900 Germany Ifo Business Climate New Jan

0900 Germany Ifo Curr Conditions New Jan

0900 Germany Ifo Expectations New Jan

1100 France Unemp Class-A SA Dec

($1 = 4.2700 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-soft-on-soyoil-weakness-sluggish-exports