VEGOILS-Palm oil tracks rival soyoil higher on smaller US soy planting
02/07/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures rose for a third session on Monday to its highest in more than two months, tracking a sharp rally in rival Chicago soyoil on concerns over smaller U.S. planting and inventories.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 175 ringgit, or 4.62%, to 3964 ringgit ($849.91) a metric ton during early trade, its highest since April 12.
FUNDAMENTALS
* India's annual monsoon covered the entire country on Sunday, six days earlier than usual, the state-run weather office said, but rain totals are 10% below average so far this season.
* India is likely to receive an average amount of rain in July despite the likely emergence of the El Nino weather pattern, a senior weather department official said, encouraging farmers to accelerate crop planting which has progressed slowly due to patchy rains in June.
* Exports of Malaysian palm oil products for June fell 6.9%, cargo surveyor Intertek Testing Services said on Friday. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.6%.
* Soyoil prices on the Chicago Board of Trade BOcv1 surged 7.3% in the previous session after the U.S. Department of Agriculture (USDA) reported much lower-than-expected 2023 soy plantings and June 1 inventories. It rose 0.4% on Monday.
* Dalian's most-active soyoil contract DBYcv1 rose 5.1%, while its palm oil contract DCPcv1 gained 4.5%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
* Asian shares firmed as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal to the outlook for the Chinese economy and U.S. interest rates. MKTS/GLOB
DATA/EVENTS (GMT, June)
0145 China Caixin Mfg PMI Final
0750 France S&P Global Mfg PMI
0755 Germany HCOB Mfg PMI
0800 EU HCOB Mfg Final PMI
0830 UK S&P GLBL/CIPS Mfg PMI Final
1345 US S&P Global Mfg PMI Final
1400 US ISM Manufacturing PMI
($1 = 4.6640 ringgit)
Source: Reuters