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Palm oil climbs on stronger early Sept exports

September 19, 2022: Malaysian palm oil futures rose on Monday as trading resumed after a three-day closure, lifted by a surge in exports during the first half of September and tracking gains in rival edible oils.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange gained 70 ringgit, or 1.85%, to 3,853 ringgit ($848.12) a tonne during early trade. It was on course to end a two-session loss.

FUNDAMENTALS

* Exports of Malaysian palm oil products for Sept. 1-15 rose 19% and 25% from the same period in August, cargo surveyors said last week.

* India, the world's biggest edible oil buyer, has slashed the base import prices of crude and refined palm oil, and crude soya oil, as prices corrected in the world market.

* Farmers across Asia are busy planting trees to boost palm oil production but nurseries are struggling to keep up with demand for sprouts and seedlings, risking a delay in the industry's recovery from the COVID-19 pandemic.

* Dalian's most-active soyoil contract DBYcv1 rose 0.7%, while its palm oil contract DCPcv1 gained 1.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.3%.

* 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 support of 3,686 ringgit per tonne, a break below which could be followed by a further drop into 3,542-3,608 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Share markets idled in Asia on Monday as investors braced for a week littered with 13 central bank meetings that are certain to see borrowing costs rise across the globe and some risk of a super-sized hike in the United States.

Reuters

Posted on:2022-09-19T10:08:49+05:00

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