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VEGOILS-Palm posts weekly losses as optimism over lower stocks wanes

Reuters · 01/06/2023 06:09
VEGOILS-Palm posts weekly losses as optimism over lower stocks wanes

Updates prices


- Malaysian palm oil futures dropped for a third session on Friday to post a weekly decline, as buying momentum during early trading over a likely fall in stocks dissipated.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange lost 0.93% to 4,052 ringgit ($920.70) per tonne, erasing its gains in the morning session. The contract lost 2.92% this week.

The initial optimism about lower December inventory evaporated after the market digested data outlooks, according to a Kuala Lumpur-based trader. Another trader said market participants were looking for leads to guide their positions.

"As estimates for MPOB December end stocks are still above 2 million tonnes, and it's at 3 year highs, buying momentum in Malaysian palm oil fizzled out," the first trader said.

Malaysia's palm oil inventories at end-December are estimated to shrink 5.3% to 2.17 million tonnes from prior month, their lowest levels in four months as production and exports slowed, according to a Reuters survey.

Production declined 3% to 1.63 million tonnes, while exports fell 1% to 1.5 million tonnes, according to the poll.

Soyoil prices on the Chicago Board of Trade BOc2 were up 0.54%, while Dalian's most-active soyoil contract DBYv1 edged 0.18% higher while its palm oil contract DCPv1 rose 0.34%.

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 slide a bit more into a range of 3,997 ringgit to 4,022 ringgit per tonne, as it has broken a support at 4,109 ringgit, Reuters technical analyst Wang Tao said. TECH/C


($1 = 4.4010 ringgit)


(Reporting by Fransiska Nangoy and Bernadette Christina; Editing by Sherry Jacob-Phillips and Vinay Dwivedi)

((Fransiska.Nangoy@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