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Palm slips on weaker rival oils, expectations of higher Jan stockpiles

February 08, 2022: Malaysian palm oil futures fell on Tuesday, as rival oils traded lower, while the forecast of a marginal increase in January stockpiles also weighed on sentiment.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange traded 0.29% lower at 5,520 ringgit ($1,319.31) a tonne by 0238 GMT.

It fell 1.4% on Monday but regained some ground in overnight trade.

FUNDAMENTALS

* Malaysia's palm oil stockpile at the end of January likely stayed flat, as both production and exports in the world's second-largest producer plunged to an 11-month low, a Reuters survey showed on Monday.

* Indonesia, the world's top palm oil shipper, has issued export permits for a combined 310,000 tonnes of crude palm oil and 18,178 tonnes of olein for six companies, a Trade Ministry senior official told Reuters.

* Dalian's most-active soyoil contract fell 1.59%, while its palm oil contract for May delivery lost 1.31%. Soyoil prices on the Chicago Board of Trade were down 0.4%.

* 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 support at 5,484 ringgit per tonne, a break below which could cause a fall into 5,366-5,425 ringgit range, Reuters technical analyst Wang Tao said.

Reuters

Posted on: 2022-02-08T09:13:29+05:00

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