Palm oil tracks soyoil lower ahead of key data

August 10, 2022: Malaysian palm oil futures retreated on Wednesday from a three-day climb, as the contract tracked weakness in rival soyoil ahead of key data by the Malaysian Palm Oil Board.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 31 ringgit, or 0.75%, to 4,088 ringgit ($917.62) a tonne during early trade.

FUNDAMENTALS

The Malaysian Palm Oil Board is scheduled to release supply-and-demand data for July later in the day. A Reuters poll pegged Malaysia's palm oil inventories in end-July to jump to the highest in eight months due to improving production and soaring imports. 

Dalian's most-active soyoil contract DBYcv1 was up 0.9%, while its palm oil contract DCPcv1 was flat. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.7%.

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

MARKET NEWS

A gauge of global stock markets rose for a fifth straight session while the euro edged up in choppy trading after the European Central Bank raised interest rates for the first time in more than a decade as it seeks to rein in inflation. 

Reuters