August 04, 2022: Malaysian palm oil futures fell more than 3% in early trade on Thursday, weighed down by rising supply outlook and higher selling pressure from larger producer Indonesia.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 76 ringgit, or 1.97%, to 3,788 ringgit ($850.47) a tonne during early trade, down for a third in four sessions.
FUNDAMENTALS
Malaysia's palm oil stocks in end-July likely rose by 9.8% from the previous month to 1.82 million tonnes due mainly to higher output, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.
The first grain ship to leave a Ukrainian port in wartime passed through the Bosphorus Strait on Wednesday en route to Lebanon for a delivery that foreign powers hope will be the first of many to help ease a global food crisis.
The shipment raises hope for better Black Sea supplies, Refinitiv Commodities Research said in a note late Wednesday. The Black Sea accounts for 60% of world sunflower oil output and 76% of exports.
Lower payable export duties and higher exportable volumes in Indonesia have made its palm oil more competitive than Malaysian palm oil.
Dalian's most-active soyoil contract DBYcv1 fell 3.3%, while its palm oil contract DCPcv1 slipped 4.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.2%.
Palm oil may test a support at 3,717 ringgit per tonne, a break below could open the way towards the 3,489-3,598 ringgit range, Reuters technical analyst Wang Tao said.
MARKET NEWS
Asian stocks rose, taking cues from a strong rally on Wall Street after robust economic data and upbeat corporate guidance boosted investor appetite.
Reuters
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