VEGOILS-Palm oil slips over 3% to five-month low
21.03.2023 (Nasdaq) - (Reuters) - Malaysian palm oil futures fell more than 3% on Wednesday to its lowest in five months, dragged by deep losses in rival edible oils, crude and lingering concerns over the global banking crisis.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 121 ringgit, or 3.2%, to 3,663 ringgit ($819.10) a tonne during early trade, its lowest since Oct. 14.
FUNDAMENTALS
* Exports of Malaysian palm oil products for Mar. 1-20 rose 30.4% to 929,274 tonnes from 712,740 tonnes shipped during the same period in Feb., cargo surveyor Societe Generale de Surveillance said on Tuesday.
* Dalian's most active soyoil contract DBYcv1 fell 3.1%, while its palm oil contract DCPcv1 lost 3.9%. Soyoil prices on the Chicago Board of Trade BOcv1 extended losses after falling 3% overnight.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil fell after an industry report showed U.S. crude inventories rose unexpectedly last week, indicating that fuel demand may be weakening, making palm a less attractive option for biodiesel feedstock. O/R
* Palm oil may test a support at 3,736 ringgit per tonne, a break below which could open the way towards 3,690 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian shares staged a cautious bounce on Wednesday with hopes that a global banking crisis would be averted, vying with uncertainty over the outlook for U.S. interest rates as the Federal Reserve holds a high-stakes meeting on policy. MKTS/GLOB
DATA/EVENTS (GMT)
0700 UK Core CPI YY Feb
0700 UK CPI YY Feb
1800 US U.S. Federal Open Market Committee announces
its decision on interest rates followed by statement
($1 = 4.4720 ringgit)
(Reporting by Mei Mei Chu; Editing by Sonia Cheema)
https://www.nasdaq.com/articles/vegoils-palm-oil-slips-over-3-to-five-month-low