28/05/2023 (Nasdaq), Jakarta - Malaysian palm oil futures fell on Monday after three straight sessions of gains, dragged down by weakness in Dalian palm oil prices.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange lost 45 ringgit, or 1.26%, to 3,514 ringgit ($792.33) a tonne in early trade.

The contract rose 2.24% last week as the El Nino weather phenomenon raised output concerns.

FUNDAMENTALS

* Crude palm oil production in Malaysia, the world's second-largest producer, could drop between 1 and 3 million tonnes next year as a result of the El Nino weather pattern, the Malaysian Palm Oil Board said on Friday.

* Malaysia's exports during May 1-25 fell 0.7% from the same period in April, cargo surveyor Intertek Testing Services said on Friday. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.7%.

* Dalian's most-active soyoil contract DBYcv1 rose 0.64%, while its palm oil contract DCPcv1 fell 0.41%. The Chicago Board of Trade was closed for Memorial Day holiday.

* 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 retrace to 3,498 ringgit per tonne, as it failed to break resistance at 3,563 ringgit. TECH/C

MARKET NEWS

* Asian shares and U.S. stock futures rose, thanks to a weekend deal by U.S. President Joe Biden and House Speaker Kevin McCarthy to suspend the government's debt ceiling, ending a protracted stalemate and providing some relief for investors.MKTS/GLOB

DATA/EVENTS (GMT)

No major data/events expected on Monday, May 29

($1 = 4.4350 ringgit)

Source Reuters

https://www.nasdaq.com/articles/vegoils-palm-snaps-three-days-of-gains-on-weaker-dalian-oil