Palm oil firms on higher early September exports

September 12, 2022: Malaysian palm oil futures edged up on Monday ahead of key palm oil board data, supported by a rise in early September exports.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit, or 0.92%, to 3,627 ringgit a tonne during early trade.

FUNDAMENTALS

* The Malaysian Palm Oil Board (MPOB) is scheduled to release August supply and demand data later in the day. A Reuters poll has pegged a rise in production lifting inventories to 2.03 million tonnes. PALM/POLL

* Exports of Malaysian palm oil products for Sept. 1-10 rose between 9.3% and 16.2% from the same period in August, cargo surveyors said on Saturday.

* Soyoil prices on the Chicago Board of Trade BOcv1 fell 1%. The Dalian Commodity Exchange was closed for a public holiday.

* 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 retest a resistance at 3,666 ringgit per tonne, a break above could lead to a gain into the 3,738-3,783 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares slid as the mounting risk of more aggressive rate hikes in the United States and Europe shoved bond yields and the dollar sharply higher, and tested equity and earnings valuations.

* Oil prices slipped as the prospect of further interest rate hikes in the United States and Europe to quell inflation and the imposition of strict COVID-19 restrictions in China overshadowed the global demand outlook.

Reuters