01/08/2023 (Hellenic Shipping News) - Malaysian palm oil futures closed down 3.02% on Monday, following a stronger ringgit and weakerrival oils, although the contract booked a monthly gain.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange shed 3.02% to 3,885 ringgit ($861.99) pertonne at the closing price, its weakest level in more than a month. The contract logged a 2.53% monthly gain.

“After last week’s rally on Russian-Ukraine news, the market seems to be taking a breather, alongside the strengthened ringgit,” a Kuala Lumpur-basedtrader said.

Dalian’s most-active soyoil contract DBYcv1 was down 2.12%,while its palm oil contract DCPcv1 dropped 2.38%.Soyoil prices on the Chicago Board of Trade BOc2 lost 2.51%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Malaysia’s palm oil exports forJuly rose 7.8% from the month before, according to AmSpec Agri Malaysia, while cargo surveyor Intertek Testing Services (ITS) showed a 14% rise in exports for July.

Oil prices hovered near three-month highs on Monday, set to post their biggest monthly gain in more than a year on expectations that Saudi Arabia would extend voluntary output cuts into September and tighten global supply.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Palm oil FCPOc3 may bounce to 4,057 ringgit per metric ton, before resuming its downward trend to retesta support at 3,964 ringgit.
Source: Reuters (Reporting by Fransiska Nangoy and Dewi Kurniawati; Editing by Nivedita Bhattacharjee and Sonia Cheema)

https://www.hellenicshippingnews.com/palm-oil-closed-down-3-on-stronger-ringgit-weaker-rival-oils/