VEGOILS-Palm oil surrenders gain after hitting over three-month high
KUALA LUMPUR, July 4 (Reuters) – Malaysian palm oil futures eased on Tuesday after hitting a more than three-month high in the previous session, but global edible oil supply worries underpinned prices.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 36 ringgit, or 0.9%, to 3,949 ringgit a metric ton in early trading and could end a three-session rally.
FUNDAMENTALS
* Traders are awaiting industry forecasts of Malaysia’s June palm oil supply and demand, ahead of Malaysian Palm Oil Board data scheduled next week, to determine the next price direction.
* The condition of U.S. soybean crops deteriorated over the past week as rains failed to improve conditions, government data showed on Monday, adding to supply concerns after a surprise cut to the number of soy acres planted in the country by the agriculture department.
* Soyoil prices on the Chicago Board of Trade BOcv1 rose 2% overnight, but is closed on Tuesday for a public holiday. Dalian’s most-active soyoil contract DBYcv1 rose 1%, while its palm oil contract DCPcv1 gained 0.3%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices held steady as markets weighed supply woes from cuts for August by top exporters Saudi Arabia and Russia against economic data that hinted at weak crude demand. O/R
KUALA LUMPUR, July 4 (Reuters) – Malaysian palm oil futures eased on Tuesday after hitting a more than three-month high in the previous session, but global edible oil supply worries underpinned prices.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 36 ringgit, or 0.9%, to 3,949 ringgit a metric ton in early trading and could end a three-session rally.
FUNDAMENTALS
* Traders are awaiting industry forecasts of Malaysia’s June palm oil supply and demand, ahead of Malaysian Palm Oil Board data scheduled next week, to determine the next price direction.
* The condition of U.S. soybean crops deteriorated over the past week as rains failed to improve conditions, government data showed on Monday, adding to supply concerns after a surprise cut to the number of soy acres planted in the country by the agriculture department.
* Soyoil prices on the Chicago Board of Trade BOcv1 rose 2% overnight, but is closed on Tuesday for a public holiday. Dalian’s most-active soyoil contract DBYcv1 rose 1%, while its palm oil contract DCPcv1 gained 0.3%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices held steady as markets weighed supply woes from cuts for August by top exporters Saudi Arabia and Russia against economic data that hinted at weak crude demand. O/R
MARKET NEWS
* Most Asian stocks fell on Tuesday, while the U.S. dollar and oil steadied, as investors held safe ranges awaiting more clues on whether central banks will continue their aggressive interest rate hikes. MKTS/GLOB
DATA/EVENTS (GMT)
0430 Australia RBA Cash Rate July
0600 Germany Exports, Imports MM SA May
0600 Germany Trade Balance, EUR, SA May
(Reporting by Mei Mei Chu;Editing by Dhanya Ann Thoppil)
((Meifong.chu@thomsonreuters.com))
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