VEGOILS-Palm oil set to rise on smaller-than-expected stocks, higher July exports
10/07/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures ticked up on Monday after trading in a tight range, with data showing a surge in July exports and a slower rise in June inventories likely to further support prices.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 11 ringgit, or 0.29%, to 3,845 ringgit ($823.87) a tonne by the midday break.
Malaysia's palm oil inventories at the end of June rose 1.9% from the month before to 1.72 million metric tons, much smaller than industry forecasts, according to Malaysian Palm Oil Board (MPOB) data released during the midday break.
Crude palm oil output fell 4.6% to 1.45 million tons, while exports surpassed estimates with a 8.6% rise to 1.17 million, MPOB data showed.
Meanwhile, exports from Malaysia during the July 1-10 period rose between 18.7% and 26.1%, data from cargo surveyors Amspec Agri and Intertek Testing Services showed.
Dalian's most-active soyoil contract DBYcv1 fell 0.6%, while its palm oil contract DCPcv1 eased 0.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.8%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia on Friday forecast the peak of the El Niño weather phenomenon, which brings prolonged hot and dry weather, will hit the country at the beginning of 2024.
Palm oil may break a support at 3,817 ringgit per metric ton, and fall into the 3,745-3,783 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.6670 ringgit)
Source: Reuters