Palm oil jumps tracking rival oils, Indonesia lifting export levy weighs

July 18, 2022: Malaysian palm oil futures climbed on Monday, tracking overnight gains in rival soyoil, although top producer Indonesia's move to lift its export levy capped gains.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange jumped 148 ringgit, or 4.08%, to 3,777 ringgit ($849.15) a tonne during early trade.

FUNDAMENTALS

* Indonesia has scrapped its export levy for all palm oil products until Aug. 31 in a fresh attempt to boost exports and ease high inventories, finance ministry officials said on Saturday, adding that the move would not disrupt government revenues.

* Dalian's most-active soyoil contract DBYcv1 gained 3.3%, while its palm oil contract DCPcv1 rose 3.5%. Soyoil prices on the Chicago Board of Trade BOcv1 eased after a 4% climb on Friday.

* 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 3,782 ringgit per tonne, a break above which could lead to a gain into the 3,900-4,090 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares inched higher, following a much-needed bounce on Wall Street on Friday, but nerves are stretched ahead of a near-certain rate hike in Europe and another round of corporate earnings reports.

Reuters