Palm oil firms on weaker ringgit, supply worries
23/01/2024 (XM), Singapore - Malaysian palm oil futures roseon Tuesday amid inclement weather in the country, recouping some of the losses from the previous session as a weaker ringgit supported prices, although declines in rival oils capped gains.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange rose 55 ringgit, or 1.41% to 3,959 ringgit ($836.47) a metric ton in morning trade.
The market fell nearly 1% on Monday.
FUNDAMENTALS
* The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.19% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
* Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for Jan. 1-20 at 728,250 metric tons, according to LSEG.
* Dalian's most-active soyoil contract DBYcv1 fell 0.05%, while its palm oil contract DCPcv1 was down 0.56%. Soyoil prices on the Chicago Board of Trade BOcv1 was down 0.46%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* The Malaysian Meteorological Department issued a severe-level continuous rain warning for six states in Terengganu until Wednesday.
* Palm oil may retest resistance at 3,953 ringgit per metric ton, said Reuters technical analyst Wang Tao. TECH/C
MARKET NEWS
* Japanese shares surged to fresh 34-year highs and the yen steadied on Tuesday, hoping the Bank of Japan will not rock the boat by pivoting away from its super easy policy any time soon, while Chinese stocks extended declines after a brutal session. MKTS/GLOB
* Oil prices eased in early trade on Tuesday as economic concerns hampering global oil demand outweighed geopolitical tensions in the Middle East and supply worries following an attack on a Russian fuel export terminal over the weekend. O/R
DATA/EVENTS
0330 Bank of Japan concludes two-day policy meeting, announces decision
0500 Japan Chain Store Sales YY Dec
1500 US Consumer Confid. Flash Jan
($1 = 4.7330 ringgit)