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Palm oil rebounds, weak exports cap gains

June 27, 2022: Malaysian palm oil futures jumped more than 2% on Monday, recouping some losses from a plunge last week, but gains were capped by weak exports so far in June.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 111 ringgit, or 2.38%, to 4,775 ringgit ($1,084.73) a tonne during early trade.

Palm declined 14.5% last week, effectively giving up most of the gains for this year so far. The contract had rallied earlier this year due to a global edible oil shortage after Russia's invasion of Ukraine disrupted supplies of sunflower oil.

FUNDAMENTALS

Exports of Malaysian palm oil products for June 1-25 fell between 13% and 19.6% from the same period in May, cargo surveyors said on Saturday.

Germany does not expect its proposal for a temporary waiver on biofuel mandates to get agreement from the Group of Seven leading industrialized democracies due to resistance from the United States and Canada, a German government source said. 

Dalian's most-active soyoil contract DBYcv1 rose 1.4%, while its palm oil contract DCPcv1 gained 0.04%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.14%.

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

MARKET NEWS

Stocks gained in Asia, amid improved risk sentiment after Wall Street rebounded strongly at the end of last week as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening. 

Reuters

Posted on: 2022-06-27T09:35:27+05:00

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