June 21, 2022: Malaysian palm oil futures on Tuesday reversed losses from the previous session, after plunging to their lowest since Jan. 4, supported by stronger vegetable oil prices on the Dalian Commodity Exchange.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 87 ringgit, or 1.75%, to 5,068 ringgit ($1,152.34) per tonne in early trade.
“Dalian strengthened in the morning and soybean oil didn't follow palm big drop yesterday. Based on spreads, CPO should open higher,” a Kuala Lumpur-based trader told Reuters.
The contract lost nearly 9% on Monday, the biggest daily loss since Jan. 28, 2020, after posting the worst weekly session in six weeks last week.
FUNDAMENTALS
* The world's top palm oil exporter Indonesia has issued permits for the shipment of more than 1.4 million tonnes of edible oil under its Domestic Market Obligation scheme and export acceleration programme as of Monday, a trade ministry official said. Read full story
* Indonesia set its July crude palm oil reference price at $1,615.83 per tonne, which would place the export levy and export tax at a maximum $200 per tonne and $288 per tonne, respectively.
* Exports of Malaysian palm oil products for June 1-20 fell between 10.5% to 17%, according to cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
* Palm oil FCPOc3 may bounce into a range of 5,086 ringgit to 5,204 ringgit, as it has found a support at 4,896 ringgit per tonne, Reuters technical analyst Wang Tao said.
* Dalian's most-active soyoil contract DBYcv1 fell 2.03%, while its palm oil contract DCPcv1 fell 2.28%. Soyoil prices on the Chicago Board of Trade BOcv1 were traded 1.06% lower.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Reuters
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