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VEGOILS-Palm oil slips on profit booking after three-day rally

VEGOILS-Palm oil slips on profit booking after three-day rally

Reuters · 09/13/2022 23:21
VEGOILS-Palm oil slips on profit booking after three-day rally

- Malaysian palm oil futures fell on Wednesday as investors booked profits after a three-day rally amid a broader weakness in the market on expectations of persistent production growth, although a weakening ringgit cushioned losses.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange slid 65 ringgit, or 1.67%, to 3,833 ringgit ($847.45) during early trade.


FUNDAMENTALS

* The ringgit MYR=, palm's currency of trade fell 0.4% to its lowest since 1998, making the commodity cheaper for holders of foreign currency.

* The value of Colombia's palm oil exports may rise significantly to $800 million this year, thanks to high international prices and stable production, the palm growers association said on Tuesday.

* Dalian's most-active soyoil contract DBYcv1 fell 0.04%, while its palm oil contract DCPcv1 gained 0.9%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.3%.

* Malaysian plantations are in their peak production season and rose 9.7% month-on-month in August, according to palm oil board data. Analysts expect production to remain strong in September before tapering off during the fourth quarter.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Palm oil faces a strong resistance at 3,916 ringgit per tonne, it may hover below this level or retrace towards 3,686 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares tumbled, the dollar held firm and the U.S. yield curve was deeply inverted on Wednesday, as a white-hot U.S. inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer. MKTS/GLOB

* Oil prices inched higher in early trade, as OPEC stuck to forecasts for robust global fuel demand growth, offsetting concerns of another U.S. Federal Reserve interest rate hike week after consumer prices unexpectedly rose in August. O/R

DATA/EVENTS (GMT)

0600 UK CPI YY Aug

1230 US PPI Machine Manufacturing Aug




($1 = 4.5230 ringgit)


(Reporting by Mei Mei Chu; Editing by Rashmi Aich)

((Meifong.chu@thomsonreuters.com))

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.  * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the  page in the same chain, hit F12. To go back, hit F11. Vegetable oils                       OILS/ASIA1 Malaysian palm oil exports           SGSPALM1   CBOT soyoil futures                  0#BO:      CBOT soybean futures                 0#S:       Indian solvent                       SOLVENT01  Dalian Commodity Exchange            DC/MENU   Dalian soyoil futures                0#DBY:   Dalian refined palm oil futures      0#DCP:   Zhengzhou rapeseed oil               0#COI:   European edible oil prices/trades    OILS/E