Palm snaps 5-day losing streak on stronger soyoil

September 29, 2022: Malaysian palm oil futures rose on Thursday after plunging to a near 20-month low in the previous session, with gains in rival Dalian and Chicago soyoil underpinning the market.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange jumped 130 ringgit, or 4.03%, to 3,356 ringgit ($722.81) per tonne in early trade. The contract fell more than 17% in the previous five sessions of losses.

FUNDAMENTALS

* Dalian's most-active soyoil contract DBYcv1 rose 0.59%, while its palm oil contract DCPv1 slid 0.81%. Soyoil prices on the Chicago Board of Trade BOc2 gained 0.80%.

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

* Exports of Malaysian palm oil products for Sept. 1-25 rose between 18.6% and 20.9% from a month ago, cargo surveyors said.

* Palm oil is expected to bounce into a range of 3,360-3,427 ringgit, as it has found a support at 3,243 ringgit per tonne, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Brazilian soybean processors have temporarily halted units as crushing margins turned negative, reflecting weak domestic demand for biodiesel and high vegetable oil inventories, analysts said on Wednesday.GRA/

* Oil prices fell in early Asian trade as a strong dollar and economic woes outweighed optimism over consumer demand. O/R

* Asian share markets rose after Britain's central bank launched an emergency bond buying programme to stabilise a furious sell-off in gilts, though trade was skittish and sterling remained under pressure. MKTS/GLOB

Reuters