VEGOILS-Palm struggles for direction as market digests poor export data
26/02/2024 (Nasdaq), Jakarta – Malaysian palm oil futures looks for direction on Monday as market participants awaited new leads, while a report of weak exports data weighed the contract.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange was trading between 19 ringgit above and 20 ringgit below its Friday close of 3,851 ringgit, and was last down 0.23% at 3,844 ringgit ($805.03) per metric ton at 0312 GMT. The contract gained 1.1% last week.
FUNDAMENTALS
* The soyoil contract on the Dalian Commodity Exchange DBYcv1 was down 0.11%, while its palm oil contract DCPcv1 were up 0.47%. Meanwhile, soyoil prices on the Chicago Board of Trade BOc2 were up 0.31%.
* Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
* Exports of Malaysian palm oil products for Feb. 1-25 fell 10.7% to 951,409 metric tons from 1,064,778 metric tons shipped during January 1-25, cargo surveyor Intertek Testing Services said.
* Oil prices fell in early Asian trading on Monday, extending losses from the previous session after oil ended the week 2-3% lower amid market concerns that higher-than-expected inflation could delay U.S. interest rate cuts. O/R
* Palm oil is biased to retest support of 3,813 ringgit per metric ton, with a good chance of breaking below this level and falling towards 3,789 ringgit. TECH/C
MARKET NEWS
* Asian shares stalled near seven-month highs on Monday as investors awaited inflation data from the United States, Japan and Europe that will help refine expectations for future rate moves. MKTS/GLOB
DATA/EVENTS (GMT)
1500 US New Home Sales-Units Jan
($1 = 4.7750 ringgit)
Sour: Reuters