Palm oil recovers from early losses in range-bound trading
02/04/2024 (Reuters), Jakarta - Malaysian palm oil futures recovered in range-bound trading on Tuesday after slipping earlier, as gains eased in rival edible oils.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange rose 0.21% to 4,276 ringgit ($900.78) a metric ton, as of 0305 GMT, after falling as much as 0.98% earlier in the session.
FUNDAMENTALS
* The soyoil contract DBYcv1 on the Dalian Commodity Exchange gained 0.57%, while its palm oil contract DCPcv1 was up 0.53%. Soyoil prices on the Chicago Board of Trade BOc2 barely change.
* Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
* Exports of Malaysian palm oil products for March seen rising between 20.5% and 29.2%, cargo surveyor Intertek Testing Services and AmSpec Agri Malaysia said.
* Malaysian ringgit, the contract currency of trade slips 0.4% at 0215 GMT. A weaker ringgit makes palm more attractive to foreign currency holders.
* Palm oil FCPOc3 may rise into a range of 4,294-4,326 ringgit per metric ton, as it has briefly pierced above a falling channel, according to Reuters' technical analyst Wang Tao.
MARKET NEWS
* Asian stocks rose and the dollar firmed, keeping Japan's yen pinned near the 152-per-dollar levels that has traders worried about possible intervention, as expectations that the Federal Reserve was close to cutting interest rates faded. MKTS/GLOB
* Oil prices gained in early Asian trading, underpinned by signs of improved demand and escalating Middle East tensions that had sparked a rally in U.S. futures to a five-month high in the previous session.