Palm tracks rival oils lower, robust early-May exports limit losses

May 17, 2022: Malaysian palm oil futures resumed trading on Tuesday after a long weekend and tracked losses in rival edible oils, but the losses were limited by strong exports for the first half of May.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange slid 64 ringgit, or 1.04%, to 6,075 ringgit ($1,382.88) during early trade.

FUNDAMENTALS

* Exports of Malaysian palm oil products for May 1-15 rose 20.6% to 569,233 tonnes from 472,181 tonnes shipped during the same week in April, cargo surveyor Intertek Testing Services said on Sunday.

* The news of India banning exports of wheat on Saturday put some pressure on soyoil futures amid questions of ripple effects the ban could have on India's import demand for vegetable oils.

* Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.4%. Dalian's most-active soyoil contract DBYcv1 fell 1%, while its palm oil contract DCPcv1 lost 2.4%.

* 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 rise to 6,602 ringgit per tonne, as it managed to stabilise around support at 6,290 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares edged higher despite data reinforcing investors' fears the global economic recovery may be more fragile than expected, even as inflationary pressures remain high.

Reuters

Posted on: 2022-05-17T09:17:39+05:00

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