June 29, 2022: Malaysian palm oil futures fell more than 1% on Wednesday, snapping a two-day rally after Indonesia raised export quotas for companies.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange fell 68 ringgit, or 1.36%, to 4,921 ringgit ($1,118.92) a tonne during early trade.
Indonesian palm oil companies will be offered larger export quotas under new plans to adjust rules on local cooking oil sales, officials said on Tuesday, part of government efforts to improve domestic distribution after a months-long price crisis.
Dalian's most-active soyoil contract DBYcv1 rose 0.5%, while its palm oil contract DCPcv1 gained 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.1%.
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 test a support at 4,742 ringgit per tonne, as it could have completed a bounce from the recent low of 4,493 ringgit, Reuters technical analyst Wang Tao said.
Stocks on global indexes fell sharply on Tuesday, with the S&P 500 down 2% after a report showed U.S. consumer confidence dropped in June amid concerns about inflation, while oil prices gained for the third day.