Palm steady as lower stocks offset weak exports
14.12.2023 (The Edge Malaysia) - MUMBAI (Dec 14): Malaysian palm oil futures remained largely unchanged in early Thursday trade, with bargain buying driven by lower stocks countering pressure from slowing exports, and concerns about biodiesel demand after a slump in crude oil prices.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose RM2 or 0.05% to RM3,672 (US$787.98) in early trade. It fell 1.7% on Wednesday.
Fundamentals
* Exports of Malaysian palm oil products for Dec 1-10 fell 4.1% to 7.4% from the Nov 1-10 period, cargo surveyors said.
* Malaysia's palm oil stocks at the end of November fell for the first time in seven months, as production slumped more than exports, data from industry regulator showed on Tuesday.
* Soyoil futures on the Chicago Board of Trade were up 0.3%, after losing 2.5% in the previous two sessions. Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
* Chicago soybean futures rose for the first time in three sessions with bargain-buying underpinning prices, although expectations of rains in Brazil's parched oilseed-producing regions limited gains.
* Argentina, a leading soyoil exporter, allowed the peso currency to plunge over 50% to 801 per dollar on Wednesday.
* Palm oil may revisit its Dec 7 low of RM3,641 per metric tonne, as the bounce from this level has been deeply reversed, Reuters' technical analyst Wang Tao said.