VEGOILS-Palm edged higher as stronger rival oils support
Nov 28 (Reuters) – Malaysian palm oil futures edged up on Tuesday in range-bound trading, underpinned by a rise rival edible oils as traders weighed fears of declining production against a stronger ringgit.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange rose 27 ringgit, or 0.69%, to 3,919 ringgit ($839.73) per metric ton during early trade.
FUNDAMENTALS
* Production might fall further in late November mainly due to wet weather conditions across Peninsular Malaysia and East Malaysia, triggering flooding and disrupting harvesting, according to a report by LSEG Agriculture Research late on Monday.
* Exports of Malaysian palm oil products during Nov. 1-25 were estimated to be up between 7% and 14% from the previous month, data from surveyors Intertek Testing Services and AmSpec Agri Malaysia showed on Saturday.
* The ringgit MYR= rose 0.26% against the dollar, making the commodity more expensive for buyers holding foreign currency.
* Oil prices rose, snapping a multi-session losing streak ahead of a crucial meeting of OPEC+, which is widely expected to deepen and extend cuts to oil production amid fears of supply being consistently higher than demand. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. O/R
* Dalian’s most-active soyoil contract DBYcv1 rose 1.08%, while its palm oil contract DCPcv1 ticked up 1.31%. Soyoil prices on the Chicago Board of Trade BOcv1 extended overnight gains with a 0.74% rise.
* 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 bounce higher into a range of 3,935 ringgit to 3,953 ringgit per metric ton, to further reverse a sharp slide from the Nov. 22 high of 4,029 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks edged higher, while the dollar was at its lowest in three months as investors remained convinced the Federal Reserve was done with its rate-hike cycle and looked ahead to a crucial inflation report later this week. MKTS/GLOB
DATA/EVENTS
1500 US Consumer Confidence Nov
($1 = 4.6670 ringgit)
