06/06/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures fell on Tuesday after two consecutive sessions of gains, with traders awaiting an industry survey on May inventories, while a softer ringgit lent some support to the market.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange slid 32 ringgit, or 0.95%, to 3,349 ringgit ($728.99) a tonne in early trade.

FUNDAMENTALS

* The ringgit MYR=, palm's currency of trade, fell 0.42% against the dollar, making the commodity cheaper for holders of foreign currency.

* The European Commission said on Monday it was extending until Sept. 15 an arrangement whereby five of Ukraine's EU neighbours can restrict imports of Ukrainian grain, including sunflower seeds.

* Dalian's most-active soyoil contract DBYcv1 rose 0.3%, while its palm oil contract DCPcv1 gained 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.1%.

* 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 break a resistance at 3,390 ringgit per tonne and rise into the 3,436-3,493 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian stock markets edged lower on Tuesday as economic data showed U.S. services sector unexpectedly softened, reinforcing expectations that the Federal Reserve may skip an interest rate hike when it meets next week. MKTS/GLOB

DATA/EVENTS (GMT)

0430 Australia RBA Cash Rate June

0600 Germany Industrial Orders MM April

0600 Germany Manufacturing O/P Cur Price SA April

0600 Germany Consumer Goods SA April

0830 UK All-Sector PMI May

($1 = 4.5940 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-eases-after-two-day-surge-weaker-ringgit-limits-losses