Malaysian palm oil futures eased on Monday, weighed down by steep losses in crude oil as investors awaited August export data and Malaysian Palm Oil Board data due this week.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 26 ringgit, or 0.61%, to 4,248 ringgit ($1,006.04) a tonne during early trade, extending last week’s 2% loss.
Bursa Malaysia will be closed on Tuesday for a public holiday.
FUNDAMENTALS
* Oil prices dropped 2% on the back of a rising U.S. dollar and concerns that new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The Malaysian Palm Oil Board (MPOB) is scheduled to announce July supply and demand data on Wednesday, while cargo surveyors are expected to release data on Aug. 1-10 export shipments.
* Malaysia’s palm oil stockpile at the end of July likely expanded to its highest in 10 months, as a drop in exports offset a decline in production, a Reuters survey showed on Thursday.
* Dalian’s most-active soyoil contract DBYcv1 gained 0.7%, while its palm oil contract DCPcv1 rose 0.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.6%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
* Asian shares wobbled on Monday amid sharp losses in gold and oil prices, while the dollar reached four-month highs on the euro after an upbeat U.S. jobs report lifted bond yields.
MKTS/GLOB
DATA/EVENTS (GMT)
0900 Germany ZEW Economic Sentiment Aug
0900 Germany ZEW Current Conditions Aug
1200 Brazil IPCA Inflation Index MM July
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich)