Palm oil falls on weaker Dalian rivals, caution ahead of MPOB data
There’s been a decline in Malaysian palm oil futures, with the benchmark contract for July delivery on the Bursa Malaysia Derivatives Exchange dropping 1.28% to 3,782 ringgit per metric ton. This follows a downturn in Dalian’s palm oil and soyoil contracts. Meanwhile, soyoil prices on the Chicago Board of Trade have risen due to slow soy harvesting in Brazil’s Rio Grande do Sul state. The Malaysian ringgit remains steady against the dollar. In broader market news, Asian stocks are up for a third week, while oil prices continue to rise on positive economic indicators from China and ongoing geopolitical tensions.
SINGAPORE, May 10 (Reuters) -Malaysian palm oil futures fell on Friday, tracking weakness in Dalian rivals and as caution set in ahead of monthly Malaysian Palm Oil Board (MPOB) data due later in the day.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange fell 49 ringgit, or 1.28%, to 3,782 ringgit ($798.23) a metric ton as of 0242 GMT.
It fell 0.78% in overnight trade. The contract has declined more than 1% so far in the week.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 plunged 2.28%, while its palm oil contract DCPcv1 lost 2.07%.
* Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.49%. Soy harvesting in Brazil’s Rio Grande do Sul state has progressed slowly, according to fresh estimates by crop agency Emater on Thursday.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* The Malaysian ringgit MYR=, palm’s currency of trade, was broadly flat against the dollar.
MARKET NEWS
* Asian stocks rose, on course for a third week of gains, while the dollar was on the back foot as fresh signs of an easing U.S. labour market stoked optimism around interest rate cuts this year ahead of next week’s crucial inflation data. MKTS/GLOB
* Oil prices rose, continuing their upward trend on signs of an improving economy in China and as negotiations to halt hostilities in the stand-off between Israel and Hamas yielded no results. O/R
DATA/EVENTS (GMT)
0600 UK GDP Estimate, Prelim March
0600 UK Manufacturing Output MM March
1130 Germany Publication of the account of the
monetary policy meeting of the
Governing Council of the European
Central Bank held on April 10-11
1400 US U Mich Sentiment Prelim May
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