VEGOILS-Palm rises for sixth day on lower output worries, weaker ringgit
20/06/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures rose for a sixth straight session on Tuesday, hovering near a six-week high touched in the previous session, as the ringgit weakened and traders fretted about lower output estimates.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 28 ringgit, or 0.75%, to 3,785 ringgit ($816.26) per metric ton in early trade.
FUNDAMENTALS
* Cargo surveyors are scheduled to release June 1-20 export shipment data later in the day.
* The Southern Peninsula Palm Oil Millers' Association estimated June 1-15 production in some parts of Malaysia will fall 4.6% from the month before amid hot and dry weather, according to traders and analysts.
* The ringgit MYR=, palm's currency of trade, fell 0.26% against the dollar, making the commodity cheaper for buyers holding foreign currency.
* Dalian's most-active soyoil contract DBYcv1 rose 0.9%, while its palm oil contract DCPcv1 gained 1%. Soyoil prices on the Chicago Board of Trade BOcv1 were unchanged.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
* Stocks in Asia fell and oil prices were mixed as investors worried China's latest rate cut was not enough to boost confidence in the weakening economy and awaited a wider stimulus package by Beijing. MKTS/GLOBO/R
DATA/EVENTS (GMT)
1230 US Housing Starts Number May
2350 Japan Bank of Japan releases Minutes of Monetary
Policy Meeting held on April 27 and 28
($1 = 4.6370 ringgit)
Source: Reuters