August 03, 2022: Malaysian palm oil futures firmed on Wednesday, after two sessions of steep losses, although the gains were capped by lower export tax reference prices in rival and top producer Indonesia.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 55 ringgit, or 1.43%, to 3,896 ringgit ($874.52) a tonne during early trade.
FUNDAMENTALS
Indian state Telangana is targeting 2 million additional acres under oil palm cultivation in the next four years, aiming to reduce the nation's vegetable oil imports.
Exports of Malaysian palm oil products for July rose 6.1% from June, cargo surveyor Societe Generale de Surveillance said on Tuesday.
Indonesia has lowered its crude palm oil reference price to $872.27 per tonne, effective August 1-15, senior economic ministry official Musdhalifah Machmud said on Tuesday.
Dalian's most-active soyoil contract DBYcv1 rose 0.6%, while its palm oil contract DCPcv1 fell 1.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 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 3,717 ringgit per tonne, a break below could open the way towards the 3,489-3,598 ringgit range, Reuters technical analyst Wang Tao said.
MARKET NEWS
Asia-Pacific bond yields followed U.S. Treasury yields higher on Wednesday and the dollar continued its climb after Federal Reserve officials signaled they are nowhere near done raising interest rates.
Reuters
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