VEGOILS-Palm oil tracks rival oils higher, reverses previous session's losses
21/02/2024 (Nasdaq), Jakarta - Malaysian palm oil futures rose on Wednesday, tracking strength in Dalian's palm olein contract and Chicago soyoil, although weak exports data limited gains.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange gained 40 ringgit, or 1.04%, to 3,900 ringgit ($812.67) per metric ton in early trade.
FUNDAMENTALS
* Soyoil contract at Dalian Commodity Exchange DBYv1 were down 0.11%, while its palm oil contract DCPv1 rose 0.82%. Meanwhile, soyoil prices on the Chicago Board of Trade BOc2 were up 0.4%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Exports of Malaysian palm oil products for Feb. 1-20 were seen falling by 3.4% to 18.3% from the previous month, cargo surveyors data showed.
* Oil prices regained some ground in early Asian trade on Wednesday, as investors weighed concerns over output cuts by key producers and attacks on shipping in the Red Sea against dimmed expectations of U.S. rate cuts.O/R
* Palm oil FCPOc3 looks neutral in a narrow range of 3,856-3,891 ringgit per metric ton, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks eased on Wednesday as diminishing expectations of early interest rate cuts from the Federal Reserve sapped risk appetite, with investors looking to the minutes of the U.S. central bank's last meeting for clues on the policy outlook. MKTS/GLOB
DATA/EVENTS (GMT)
1500 EU Consumer Confid. Flash Feb
1900 US Federal Open Market Committee issues minutes
from its Jan. 30 – 31 meeting
($1 = 4.7990 ringgit)
Source: Reuters