Palm rallies for third day on strength in related oils, sluggish ringgit

August 23, 2022: Malaysia's benchmark palm oil futures rose for a third straight session on Tuesday, supported by gains in rival edible oils and a sluggish ringgit.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 1.39%, to 4,218 ringgit ($940.05) a tonne during early trade.

FUNDAMENTALS

* Dalian's soyoil contract DBYv1 gained 1.60%, while its palm oil contract DCPv1 rose 2.38%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.36%.

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

* Malaysian ringgit MYR= weakened against the dollar for a seventh straight day, making palm attractive for buyers with foreign currency.

* Malaysian palm oil products exports during Aug 1-20 fell 0.8% compared to shipments on July 1-20, cargo surveyor Societe Generale de Surveillance said on Monday.

* Exports of Malaysian palm oil products for Aug 1-20 rose 9.1% to 728,165 tonnes from the same period in July, cargo surveyor Intertek Testing Services said on Saturday, while independent inspection company AmSpec Agri Malaysia reported a 3.8% drop.

* Palm oil may retest a resistance at 4,269 ringgit per tonne, a break above which could lead to a gain to 4,452 ringgit, Reuters technical analyst Wang Tao said.

Reuters