VEGOILS-Palm set for near 2% weekly fall as Malaysia export tax weakens sentiment
19.02.2021 (in.investing.com) - KUALA LUMPUR, Feb 19 (Reuters) - Malaysian palm oil futures are set for a weekly decline, despite paring losses on Friday from the previous session's sharp fall, as the country's high export tax has dampened market sentiment.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 9 ringgit, or 0.26%, to 3,498 ringgit ($865.84) a tonne during early trade.
Palm plummeted 3.9% in the previous session and is set to fall 1.7% for the week.
Investors are now waiting for Feb. 1-20 export data due Monday.
FUNDAMENTALS
* Malaysia, the world's second largest palm producer, kept its March export tax at 8% and increased its reference price, raising concerns that it would hurt demand. Dalian's most-active soyoil contract DBYcv1 slipped 0.02%, while its palm oil contract DCPcv1 fell 0.06%. Soyoil prices on the Chicago Board of Trade BOcv1 also declined 0.58%.
* 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 bounce into a range of 3,525-3,600 ringgit per tonne, before retesting a support at 3,465 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks pulled back from all-time peaks on Friday as higher longer-dated bond yields and underwhelming U.S. data dented investor confidence in a faster economic recovery from the COVID-19 pandemic, while gold hit a seven-month trough. MKTS/GLOB
DATA/EVENTS
0700 UK
Retail Sales MM, YY
Jan
0700 UK
Retail Sales Ex-Fuel MM
Jan
0745 France CPI (EU Norm) Final MM, YY
Jan
0815 France Markit Mfg, Serv, Comp Flash PMIs Feb
0830 Germany Markit Mfg, Serv, Comp Flash PMIs Feb
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Markit Mfg, Serv, Comp Flash PMIs Feb
0930 UK
Flash Mfg, Serv, Comp PMIs
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1445 US
Markit Mfg, Serv, Comp Flash PMIs Feb
1500 US
Existing Home Sales
Jan ($1 = 4.0400 ringgit)