VEGOILS-Palm oil set to end six-day rally on estimates of higher Aug inventories
04.09.2020 (www.todayonline.com) - KUALA LUMPUR, Sept 4 - Malaysian palm oil futures are set to snap six-day winning streak on Friday on forecasts of higher August stockpiles in the world's second-largest producer, although the contract is still set to clock a weekly gain of 4.3%.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 34 ringgit, or 1.18%, to 2,857 ringgit ($689.26) a tonne by 0232 GMT.
Palm had climbed 2.8% to more than seven-month high in the previous session and is poised to post its second consecutive week of gains.
The market is also trading cautiously ahead of Sept. 1-5 export data by cargo surveyors due Saturday, traders said.
FUNDAMENTALS
* Malaysia's palm oil stockpile in August is forecast to rise 6% from July as production grew 6% on-month and exports slumped, said Ivy Ng, regional head of plantations research at CGS-CIMB Research, in a note.
* Dalian's most-active soyoil contract rose 0.12%, while its palm oil contract fell 0.74%. Soyoil prices on the Chicago Board of Trade were up 0.18%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may rise into a range of 2,910-2,946 ringgit per tonne, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asia's stock markets slipped on Friday, following the steepest Wall Street selloff since June, while safer bonds and the dollar found support as investors sought shelter.
DATA/EVENTS (GMT)
0130 Australia Retail Sales MM July
0600 Germany Industrial Orders MM July
1230 US Non-Farm Payrolls MM Aug
1230 US Unemployment Rate Aug
1230 US Average Earnings YY Aug
($1 = 4.1450 ringgit) REUTERS