Malaysian palm oil futures gained on Thursday, as concerns of tight global edible oil supplies due to the hot weather in the U.S Midwest and South America outweighed pressure from weak August exports.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange climbed 22 ringgit, or 0.5%, to 4,386 ringgit ($1,045.28) a tonne in early trade.
FUNDAMENTALS
* Exports of Malaysian palm oil products for Aug. 1-25 fell 13% from the month before, cargo surveyor Societe Generale de Surveillance said on Wednesday.
* Dryness over the next six months in Argentina is expected to reduce the size of the country’s two main cash crops, corn and soy, while complicating navigation of grain cargo ships on the Parana River, analysts said.
* The U.S. Department of Agriculture reported on Monday a weekly decline in crop conditions as severely hot weather was forecast for the heart of the Midwest crop belt, though beneficial rainfall eased some concerns.
* Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.9%, after rising 1% in the previous session. Dalian’s most-active soyoil contract DBYcv1 rose 0.8%, while its palm oil contract DCPcv1 was up 1%.
* 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 test a resistance at 4,405 ringgit per tonne, a break above which could lead to a gain into a range of 4,464-4,560 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian shares stepped back after a sharp rebound this week, though a solid Wall Street performance overnight contained losses in the region as rising vaccinations offset some of the worries over persistently high COVID-19 cases worldwide. MKTS/GLOB
DATA/EVENTS
0645 France Business Climate Mfg Aug
1230 US GDP 2nd Estimate Q2
1230 US Initial Jobless Clm Weekly
($1 = 4.1960 ringgit)
Source: Reuters (Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)