VEGOILS-Palm oil range-bound; weak ringgit and rising exports extend support
16/10/2023 (Nasdaq) - Malaysian palm oil futures eased on Monday in range trading but hovered near a two-week high hit in the previous session as a weaker ringgit and higher exports underpinned the contract.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 14 ringgit, or 0.37%, to 3,745 ringgit ($790.08) a metric ton during early trade.
FUNDAMENTALS
* Exports of Malaysian palm oil products for October 1-15 rose 7.3% to 623,245 metric tons from 580,893 metric tons shipped during September 1-15, cargo surveyor Intertek Testing Services said on Sunday.
* Indonesia lowered its crude palm oil (CPO) reference price for the Oct. 16-31 period to $740.67 per ton, from $827.37 per ton currently, a trade ministry regulation showed on Friday.
* India's palm oil imports in September fell 26% from the previous month to 834,797 tons, the lowest in three months, as higher inventories prompted refiners to curtail purchases, a trade body said on Friday.
* The Ringgit MYR=, palm's currency of trade, fell 0.32% against the dollar, making the commodity cheaper for buyers holding foreign currency.
* Dalian's most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 gained 1.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.77%.
* 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 extend gains into a range of 3,768 ringgit to 3,795 ringgit per ton, as it has pierced above a resistance zone of 3,720 ringgit to 3,730 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Crude oil hovered above $90 a barrel while equities were weak and the safe-haven dollar was firm, as investors nervously watched for whether escalating violence in Gaza would cause the conflict to spread beyond Israel and Hamas. MKTS/GLOB
DATA/EVENTS (GMT)
0900 EU Total Trade Balance SA Aug
1000 EU Reserve Assets Total Sept
($1 = 4.7400 ringgit)
Source: Reuters