VEGOILS-Palm opens down on bearish polls on inventories, weaker rival oils
Jakarta, Sept 7 (Reuters) – Malaysian palm oil futures opened lower for the fourth consecutive session on Thursday after expectations of bearish inventory data pulled prices down, while weaker rival oils weighedon the market.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 28 ringgit, or 0.72%, at 3,853 ringgit ($824.61) per metric ton in early trade.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 down 0.73%, and its palm oil contract DCPcv1 also down 1.06%. Meanwhile, soyoil prices on the Chicago Board of Trade BOcv1 were down 0.05%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Malaysia’s palm oil inventories at the end of August likely jumped to a six-month high at 1.89 million metric tons as output rose and exports slowed, a Reuters survey showed. The Malaysian Palm Oil Board (MPOB) is due to release its palm oil inventories data on Sept. 11.
* India’s palm oil imports are set to jump 26% to a record highfor the year ending on Oct. 31, 2023, as a recovery in consumption and competitive prices prompted refiners to increase purchases. Higher purchases by India, the world’s biggest importer of palm oil, could help lower inventories in top-producing Indonesia and Malaysia and support benchmark futures.
*Indonesia has set its crude palm oil reference price for the Sept. 1-15 period at $805.20 per ton and the CPO export tax and levy at $33 per ton and $85 per ton, respectively.
* Palm oil FCPOc3may drop to 3,822 ringgit per metric ton, as pointed by a falling channel, according to Reuters analyst Wang Tao.
MARKET NEWS
* World stock indexes fell while the benchmark U.S. Treasury yield rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remained.MKTS/GLOB
* Oil prices edged higher on Thursday after industry data showed U.S. crude oil inventories were likely to have fallen last week, signaling tightening supplies on top of extended production cuts in Saudi Arabia and Russia.O/R
DATA/EVENTS (GMT)
1030 Australia Trade Balance G&S July
0300 China Exports, Imports Aug
0300 China Trade Balance Aug
0600 Germany Industrial Output MM July
0600 Germany Industrial Production YY July
0600 UK Halifax House Prices MM, YY Aug
0645 France Reserve Assets Total Aug
0900 EU GDP Revise QQ, YY Q2
1230 US Initial Jobless Clm Weekly
($1 = 4.6725 ringgit)
(Reporting by Dewi Kurniawati; Editing by Sohini Goswami)
((Dewi.Kurniawati@thomsonreuters.com))
