Palm sets for first weekly climb

July 22, 2022: Malaysian palm oil futures rose on Friday after slumping over 5% in the previous session, with the benchmark contract being on track for its first weekly gain in three.

The contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange climbed 41 ringgit, or 1.1%, to 3,761 ringgit ($844.60) a tonne during early trade. For the week, it is up 4.5% so far.

FUNDAMENTALS

Indonesia's anti-monopoly agency has accused 27 cooking oil companies of unfair business practices, saying it has enough evidence to put together a formal case against them. 

Oil prices added more than $1 after sliding in the previous session on weakened demand in the United States, the world's top oil consumer, and a pick-up in supplies from Libya.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract DBYcv1 fell 0.5%, while its palm oil contract DCPcv1 lost 1.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.4%.

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

Palm may break a support at 3,706 ringgit and fall towards the July 14 low of 3,489 ringgit, Reuters technical analyst Wang Tao said. 

MARKET NEWS

A gauge of global stock markets rose for a fifth straight session while the euro edged up in choppy trading after the European Central Bank raised interest rates for the first time in more than a decade as it seeks to rein in inflation.

Reuters