September 22, 2022: Malaysian palm oil futures fell on Thursday from a one-week high scaled in the previous session, as investors fretted aggressive monetary policy tightening would slow global economic growth and dampen demand for commodities.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange slid 64 ringgit, or 1.65%, to 3,823 ringgit ($836.91) in early trade, after jumping 4% in the previous session.
FUNDAMENTALS
* India's palm oil imports in 2022/23 could jump 9% from a year earlier on a rise in domestic consumption and as competitive prices allow the tropical oil to regain its share in the world's biggest market, a Reuters survey showed on Wednesday.
* Federal Reserve Chair Jerome Powell vowed on Wednesday that he and his fellow policymakers would "keep at" their battle to beat down inflation, as the U.S. central bank hiked interest rates by three-quarters of a percentage point for a third straight time and signalled that borrowing costs would keep rising this year.
* Dalian's most-active soyoil contract DBYcv1 rose 1.5%, while its palm oil contract DCPcv1 gained 2.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.06%.
* 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 retest a resistance at 3,897 ringgit per tonne, a break above which could lead to a gain into 3,960-4,018 ringgit, Reuters technical analyst Wang Tao said.
MARKET NEWS
* The dollar surged to a fresh two-decade high and Asian stocks hit a two-year low as the prospect of U.S. interest rates rising further and faster than expected spooked investors.
Reuters
Posted on:2022-09-22T09:29:18+05:00
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