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Palm climbs for second day on India demand

September 21, 2022: Malaysian palm oil futures rose on Wednesday, extending gains to a second session on strong export demand ahead of a key festival in top buyer India.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange rose 56 ringgit, or 1.5%, to 3,793 ringgit ($830.71) a tonne in early trade.

FUNDAMENTALS

* Exports of Malaysian palm oil products for Sept. 1-20 rose 32.7% to 952,888 tonnes from 718,291 tonnes shipped during Aug. 1-20, cargo surveyor Societe Generale de Surveillance (SGS) said.

* SGS data showed shipments to India during the period surged 50%. The world's biggest edible oil buyer is ramping up purchases ahead of the Diwali festival next month.

* Dalian's most-active soyoil contract DBYcv1 rose 1.2%, while its palm oil contract DCPcv1 gained 0.9%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.2%.

* 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 retest a resistance at 3,796 ringgit per tonne, a break above which could lead to a gain into 3,847-3,897 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Stocks in Asia sank and bond yields were elevated, as investors braced for another aggressive interest rate hike from the U.S. Federal Reserve later in the day.

* Oil prices slid, extending the previous day's losses, as investors braced for another aggressive interest rate hike from the U.S. Federal Reserve that they fear could lead to recession and plunging fuel demand.

Reuters

Posted on:2022-09-21T09:41:26+05:00

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