VEGOILS-Palm rises over 2% on global edible oil supply worries
18.05.2021 (www.todayonline.com) - KUALA LUMPUR, May 18 - Malaysian palm oil futures bounced back on Tuesday as lower output in Malaysia and smaller-than-expected U.S corn plantings reignited concerns over global edible oil supply.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 103 ringgit, or 2.43%, to 4,345 ringgit ($1,053.21) a tonne in early trade, after closing 1.05% lower on Monday.
FUNDAMENTALS
* The Southern Peninsula Palm Oil Millers' Association estimated production during the first 15 days of May in some parts of Malaysia likely fell 18% month-on-month, traders said.
* European Union palm oil imports in the 2020/21 season reached 4.61 million tonnes versus 5.07 million a year ago, European Commission data showed on Monday.
* The U.S. Department of Agriculture (USDA) said U.S. farmers had planted 80% of their intended corn acres as of Sunday, short of the average estimate in a Reuters analyst poll.
* Dalian's most-active soyoil contract gained 0.6%, while its palm oil contract rose 0.2%. Soyoil prices on the Chicago Board of Trade were up 0.7%.
* 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 to 4,369 ringgit per tonne, as it has stabilized around a support at 4,195 ringgit, Reuters technical analyst Wang Tao said
MARKET NEWS
* Asian shares rose early on Tuesday, shrugging off worries about an increase in regional coronavirus infections and a subdued session on Wall Street, as inflation jitters helped push gold prices to three-month highs.
DATA/EVENTS
0600 UK CPI YY April
0900 EU HICP Final MM, YY April
1600 Russia Industrial Output April
1800 US Federal Open Market Committee releases the
minutes from its April 27-28 policy meeting
($1 = 4.1255 ringgit) REUTERS