12/07/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures fell on Thursday, surrendering gains from the previous session, tracking losses in rival edible oils after the U.S government forecast a all-time high production of soybeans.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 75 ringgit, or 1.91%, to 3,851 ringgit ($834.63) a metric ton during early trade.

FUNDAMENTALS

* Indonesia is planning to set its crude palm oil (CPO) reference price at $791.02 per metric ton for July 16-31, senior economic ministry official Musdhalifah Machmud said on Wednesday, up from $747.23 per tonne in July 1-15.

* The U.S. Department of Agriculture said on Wednesday that U.S. farmers will harvest massive crops of both corn and soybeans this year, boosting the supply base despite drought conditions stressing plants during early stages of development.

* Dalian's most-active soyoil contract DBYcv1 fell 1.8%, while its palm oil contract DCPcv1 eased 1.5%. Soyoil prices on the Chicago Board of Trade BOcv1 ticked up after a 1% overnight loss.

* 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 retest a support at 3,874 ringgit per metric ton, a break below which could open the way towards 3,800 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares and bonds rallied on Thursday while the dollar nursed heavy losses, as a surprisingly low reading on U.S. inflation stoked speculation the end of the post-pandemic tightening cycle is in sight. MKTS/GLOB

DATA/EVENTS (GMT)

0300 China Exports, Imports YY June

0300 China Trade Balance June

0600 UK GDP Est 3M/3M May

0600 UK GDP Estimate MM, YY May

0600 UK Manufacturing Output MM May

0645 France CPI (EU Norm) Final MM, YY June

1230 US Initial Jobless Clm Weekly

1230 US PPI Machine Manuf'ing June

($1 = 4.6140 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-falls-after-higher-us-soybean-output-forecast