VEGOILS-Palm oil advances to nine-day high on rising exports, weak ringgit
15/08/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures jumped for a second straight session on Wednesday and hit a nine-day high after a surge in exports during the first half of August and as the ringgit weakened.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange gained 38 ringgit, or 1%, to 3,843 ringgit ($828.77) per metric ton during early trade, its highest since Aug. 7.
FUNDAMENTALS
* Indonesia has set its crude palm oil (CPO) reference price lower at $820.35 per metric ton for Aug. 16-31, effectively keeping its CPO tax and levy unchanged, according to a trade ministry regulation.
* Exports from Malaysia during Aug. 1-15 rose 18.9% from the same period in July, cargo surveyor Intertek Testing Services said on Tuesday.
* Another cargo surveyor, Amspec Agri, said exports jumped 24.2%.
* The ringgit MYR=, palm's currency of trade, continued its downward trajectory against the dollar for the fifth consecutive day, making the commodity cheaper for buyers holding foreign currency.
* Dalian's most-active soyoil contract DBYcv1 gained 0.5%, while its palm oil contract DCPcv1 jumped 1.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.4%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil looks neutral in a range of 3,778-3,861 ringgit per metric ton, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asia stocks hit an 11-week low on Wednesday as renewed concerns about U.S. interest rates slugged Wall Street, while investors still smarted from dismal Chinese economic data and the absence of meaningful stimulus. MKTS/GLOB
DATA/EVENTS (GMT)
0600 UK Core CPI YY July
0600 UK CPI YY July
0900 EU GDP Flash Estimate QQ, YY Q2
1230 US Housing Starts Number July
1315 US Industrial Production MM July
1800 US Minutes of FOMC July 25-26 meeting
($1 = 4.6370 ringgit)
Source: Reuters