Palm rises after three days of losses

July 26, 2022: Malaysian palm oil futures rose on Tuesday, tracking stronger rival vegetable oils, with the benchmark contract regaining some of the losses recorded in the previous three straight sessions.

The contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 4.69% to 3,817 ringgit ($857.17) per tonne during early trade, recouping some of the 7.4% drop it posted over the previous three days.

FUNDAMENTALS

Indonesia has issued palm oil export permits for a combined 3.84 million tonnes through its so-called Domestic Market Obligation (DMO) scheme as well as its program to accelerate export as of Monday, Trade Ministry advisor Oke Nurwan said on Tuesday. 

Exports of Malaysian palm oil products for July 1-25 fell 11.3% from the same period in June, cargo surveyor Intertek Testing Services said on Monday, while independent inspection company AmSpec Agri Malaysia said exports fell 2.7%. 

Dalian's most-active soyoil contract DBYv1 rose 3.18%, while its palm oil contract DCPv1 gained 4.55%. Soyoil prices on the Chicago Board of Trade BOc2 were traded 1.27% higher.

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

Palm oil looks neutral in a range of 3,598-3,857 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. 

MARKET NEWS

Nasdaq closed lower on Monday after a choppy session for U.S. equities ahead of a big week of technology earnings reports while oil prices rose and Treasury yields edged higher as investors braced for a Federal Reserve interest rate hike. 

Reuters