10/07/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures traded in a tight range on Monday ahead of key data, with concerns of higher June inventories weighing on the market.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.26%, to 3,844 ringgit ($824.01) a tonne during early trade.

FUNDAMENTALS

* The Malaysian Palm Oil Board and cargo surveyors are scheduled to release June and July supply-demand data later in the day.

* A Reuters' survey last week pegged end-June inventories to rise 10.5% to 1.86 million metric tons from the prior month, but a sharper decline in production may squeeze inventory levels.

* Malaysia on Friday forecast the peak of the El Niño weather phenomenon, which brings prolonged hot and dry weather, will hit the country at the beginning of 2024.

* Dalian's most-active soyoil contract DBYcv1 fell 0.8%, while its palm oil contract DCPcv1 eased 1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.6%.

* 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 break a support at 3,817 ringgit per metric ton, and fall into 3,745-3,783 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian share markets edged cautiously higher on Monday as investors looked ahead to a key reading on U.S. inflation and the start of another corporate earnings season. MKTS/GLOB

* Oil prices dipped in early Asian trade on Monday as investors tread cautiously ahead of fresh economic data from top consumers the United States and China this week, while expected crude supply cuts from Saudi Arabia and Russia supported the market. O/R

DATA/EVENTS (GMT)

0130 China PPI, CPI YY June

($1 = 4.6650 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-trades-in-tight-range-ahead-of-key-data