VEGOILS-Palm hits over 2-month low on weaker crude, Indonesian export policy
KUALA LUMPUR, June 13 (Reuters) - Malaysian palm oil futures touched a more than two-month low on Monday and extended losses for a fourth consecutive session, as weak crude and Indonesia's plans to accelerate exports weighed on prices.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange fell 124 ringgit, or 2.09%, to 5,796 ringgit ($1,313.09) a tonne by 0343 GMT, its lowest since April 8. It dropped 8.3% last week.
* Indonesia, the world's biggest exporter of palm oil, has yet again reversed its export policy, looking to accelerate shipments just weeks after ending a three-week export ban aimed at maintaining domestic supply. nL4N2XX1CQ
* The country has issued export permits for about 460,000 tonnes of palm oil products as of June 9, a senior trade ministry official said on Friday. nJ9N2W4017
* Meanwhile, Malaysia's end-May inventories shrank as exports surged to a five-month peak, while production was virtually unchanged, data from the Malaysian Palm Oil Board (MPOB) showed on Friday. nL1N2XX07O
* Oil prices slipped more than $2 as a flare-up in COVID-19 cases in Beijing quelled hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and economic growth further depressed the market.
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. O/R
* In rival oils, Dalian's most-active soyoil contract DBYcv1 fell 1.3%, while its palm oil contract DCPcv1 lost 2.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.2%.
* The ringgit MYR=, palm's currency of trade, fell 0.32% against the dollar, making the commodity cheaper for holders of foreign currencies.
* Palm oil may drop to 5,702 ringgit per tonne, Reuters technical analyst Wang Tao said. TECH/C
* Asian stocks sank on Monday and bond yields ticked higher, as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about growth. MKTS/GLOB
DATA/EVENTS (GMT, April)
0600 UK GDP Est 3M/3M
0600 UK GDP Estimate MM, YY
0600 UK Manufacturing Output MM
($1 = 4.4150 ringgit)
($1 = 4.4140 ringgit)
(Reporting by Mei Mei Chu in Kuala Lumpur; editing by Uttaresh.V)
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