MARKET DEVELOPMENT
VEGOILS-Palm oil rises for third day on better exports, supply worries
VEGOILS-Palm oil rises for third day on better exports, supply worries
Today Online (22/10/2020) - KUALA LUMPUR, Oct 22 - Malaysian palm oil futures gained for a third straight session on Thursday as improving demand and fears of declining output lifted prices, although weakness in rival soybean oil capped gains.
The benchmark palm oil contract, for January delivery, on the Bursa Malaysia Derivatives Exchange rose 15 ringgit, or 0.52%, to 2,903 ringgit ($700.19) a tonne by 0303 GMT.
FUNDAMENTALS
* The Southern Palm Oil Millers Association estimated production during Oct. 1-20 fell 10%, traders said on Wednesday.
* Palm oil imports from key destinations in the 2020/21 season are expected to improve slightly from the previous season, but demand from Europe will likely fall 8.5% due to new biodiesel and food policies, Refinitiv analysts said in a report on Wednesday.
* Refinitiv pegged India's imports in 2020/21 to rise 4.8% to 8.7 million tonnes. China, who is driving the demand recovery, is expected to increase its imports by 3% to 6.9 million tonnes.
* Dalian's most-active soyoil contract fell 0.03%, while its palm oil contract gained 0.2%. Soyoil prices on the Chicago Board of Trade were down 0.6%.
* 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 test a support at 2,866 ringgit per tonne, with a good chance to break this level and fall into 2,768-2,817 ringgit range, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian investors prepared for rough trading on Thursday after a bumpy session on Wall Street amid fears that agreement on a key U.S. stimulus bill will not be reached until after the presidential election.
DATA/EVENTS
0645 France Business Climate Mfg Oct
1230 US Initial Jobless Clm Weekly
1400 US Existing Home Sales Sept
1400 EU Consumer Confid. Flash Oct
($1 = 4.1460 ringgit) REUTERS