Palm oil set for 2nd weekly loss as Indonesia moves to retake market share

June 16, 2022: Malaysian palm oil futures ticked up on Thursday after plunging in the previous session, but the contract is set for a second weekly loss as top producer Indonesia increases its export volumes.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 9 ringgit, or 0.16%, to 5,585 ringgit ($1,270.47) a tonne during early trade.

For the week, the palm has declined 5.4% so far.

FUNDAMENTALS

* The world's top palm oil exporter Indonesia has issued permits for the shipment of 602,142 tonnes of the edible oil under its Domestic Market Obligation scheme as of late Wednesday, trade ministry official Oke Nurwan said.

* India has reduced the base import prices of crude palm oil, soyoil, gold and silver, the government said late on Wednesday. Read full story

* Dalian's most-active soyoil contract DBYcv1 fell 1.1%, while its palm oil contract DCPcv1 gained 1.9%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.3%.

* 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 fall towards 5,394 ringgit per tonne, to fulfil this ultimate target, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian stocks rose on Thursday, while longer-dated U.S. government bond yields fell and the dollar was down from two-decade highs after the U.S. Federal Reserve delivered an aggressive rate hike and cut its growth projections.

Reuters