Palm extends losses to fifth day on weaker rival oils

September 28, 2022: Malaysian palm oil futures fell for a fifth straight session on Wednesday, tracking weaker rival oils while lingering concerns of oversupply also weighed on prices.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange fell 1.5% to 3,470 ringgit per tonne in early trade.

The contract lost more than 9% in the previous four sessions.

FUNDAMENTALS

* Dalian's most-active soyoil contract DBYv1 fell 0.25%, while its palm oil contract DCPv1 dropped 1.08%. Soyoil prices on the Chicago Board of Trade BOc2 were trading 0.46% lower.

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

* Exports of Malaysian palm oil products for Sept. 1-25 rose between 18.6% and 20.9% from a month-ago figures, cargo surveyors said. Read full storyRead full storyRead full story

* Palm oil may retest a support at 3,427 ringgit per tonne, a break below could open the way towards 3,288-3,360 ringgit range. TECH/C

MARKET NEWS

* Oil prices were mixed in early Asian trade on Wednesday as support from U.S. production cuts caused by Hurricane Ian contended with crude storage builds and a strong dollar. O/R

* Asian share markets slid as surging borrowing costs fed fears of a global recession, spooking investors into the arms of the safe-haven dollar and driving the Chinese yuan to record lows.

Reuters