Palm rebounds ahead of Malaysia export figures

July 25, 2022: Malaysian palm oil futures rebounded on Monday ahead of export numbers from the country, while concerns over Indonesia easing export restrictions may cap gains.

The contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 0.46% to 3,721 ringgit ($836.18) a tonne during early trade. It recouped some of the 6%losses posted in the previous two sessions.

FUNDAMENTALS

Exports of Malaysian palm oil products for July 1-20 fell to 724,283 tonnes from 734,231 tonnes shipped during June 1-20, cargo surveyor Societe Generale de Surveillance said on Monday. 

Indonesia is considering removing a domestic sales requirement for palm oil exports as high inventories of the vegetable oil have been holding back recovery of palm oil fruit prices, the trade minister said on Friday. 

Dalian's most-active soyoil contract DBYcv1 rose 0.24%, while its palm oil contract DCPv1 gained 0.26%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.32%.

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 revisit its July 14 low of 3,489 ringgit per tonne, as the bounce from this level has been almost reversed, Reuters technical analyst Wang Tao said. 

MARKET NEWS

Asian stocks lost ground on Monday, retreating from over three-week highs as worries about a global economic downturn sapped investors' risk appetite. 

Reuters