Palm falls on November stocks, weaker rival oils

December 13, 2021: Malaysian palm oil futures slid on Monday, tracking losses in rival oils and as larger-than-expected November inventories weighed on market sentiment, as per Reuters.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 46 ringgit, or 0.96%, to 4,754 ringgit ($1,130.29) in early trade, down for the third session in four.

FUNDAMENTALS

* Exports of Malaysian palm oil products for Dec. 1-10 rose 0.2% to 572,689 tonnes from 571,450 tonnes shipped during Nov. 1-10, cargo surveyor Intertek Testing Services said on Friday.

* Malaysia's palm oil end-stocks for November beat market surveys with a smaller-than-expected decline as the rise in exports came in lower than estimates, Malaysian Palm Oil Board data showed on Friday.

* Dalian's most-active soyoil contract slipped 1.3%, while its palm oil contract lost 1.9%. Soyoil prices on the Chicago Board of Trade were up 0.6%, after a 2.1% slump in the previous session.

* 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 4,873 ringgit per tonne, a break above which could lead to a gain to 4,948 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian stocks crept higher on Monday as investors prepared to tiptoe through a minefield of 17 central bank meetings this week and the likely early end to U.S. policy stimulus.

* Oil prices rose, extending gains from last Friday, helped by growing optimism that the Omicron coronavirus variant's impact will be limited on global economic growth and fuel demand.

Reuters