14/02/2023 (Hellenics Shipping News) - Malaysian palm oil futures dropped for a third day on Monday after rival oils turned negative and dragged on sentiment for palm despite strong export data.

The benchmark palm oil contract FCPOc3 for April delivery fell 0.33% to 3,918 ringgit ($898.62) per tonne by the end of the afternoon session, extending a 1.60% loss posted over the previous two sessions.

Palm gained as much as 0.79% earlier on Monday before reversing its movement.

The Feb. 1-10 export data “should be supportive, yet our market is influenced by Dalian behaviour,” said a trader in Kuala Lumpur, adding that market participants would likely wait for the Feb. 1-15 export data to decide their further move.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Dalian’s most-active soyoil contract DBYv1 eased from its 1.11% gain to close 0.39% lower, while its palm oil contract DCPv1 fell 1.22%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.92%.

Previously, it had said it was suspending some export permits.

An official on Monday said the review was still ongoing and the government continued to asses market conditions.

Indonesia’s plans to restrict palm oil exports are unlikely to create a shortage in top consuming market India, where stocks have risen to a record high following aggressive imports in the past three months, industry officials said.

Palm oil may retest the support of 3,859 ringgit per tonne, a break below which could be followed by a drop to 3,708 ringgit, Reuters technical analyst Wang Tao said.

Source: Reuters

https://www.hellenicshippingnews.com/palm-oil-extends-losses-to-a-third-day-as-rival-oil-drags/