VEGOILS-Palm oil slips from three-week peak, supply fears check losses
08/05/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures fell on Tuesday after a four-session rally, slipping from a near three-week peak ahead of key data, although expectations of lower supply capped losses.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange slid 65 ringgit, or 1.73%, to 3,697 ringgit ($833.60) a tonne during early trade.
It had jumped 12.7% in the last four sessions.
FUNDAMENTALS
* Investors are awaiting Malaysian Palm Oil Board data for April supply and demand due on Wednesday.
* Slow exports have weighed on prices, but losses have been capped by forecasts for a decline in inventories and production.
* Malaysian Palm Oil Association data showed April production declined by 8.9% compared with March, resulting from fewer working days, Refinitiv Agriculture Research said in a note late Monday.
* The United Nations said on Sunday or Monday under a deal allowing the safe Black Sea export of Ukraine grain, which Moscow has threatened to quit on May 18 over obstacles to its own grain and fertilizer exports.
* Dalian's most-active soyoil contract DBYcv1 fell 0.4%, while its palm oil contract DCPcv1 gained 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.3%.
* 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 drop to 3,634 ringgit per tonne, as it failed to break a resistance at 3,817 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* A gauge of global equity markets rose and the dollar was mostly flat on Monday, as expected talks in Washington about the debt ceiling raised concerns, while U.S. inflation data later this week should add clarity on Federal Reserve monetary policy. MKTS/GLOB
DATA/EVENTS (GMT, April)
0300 China Exports, Imports YY
0300 China Trade Balance
0600 UK Halifax House Prices MM, YY
0645 France Reserve Assets Total
($1 = 4.4350 ringgit)
Source: Reuters