VEGOILS-Palm oil edges up, set for fourth weekly rise on supply concerns
KUALA LUMPUR, July 21 (Reuters) – Malaysian palm oil futures ticked up on Friday, setting it on course for a fourth weekly rise on robust July exports so far and concerns over Black Sea supplies.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 19 ringgit, or 0.47%, to 4,065 ringgit ($893.21) a metric ton during early trade, its highest since March 14.
For the week, palm has risen 4.4% so far.
FUNDAMENTALS
* Malaysia’s palm oil exports during July 1-20 rose 19% from the month before, cargo surveyor Intertek Testing Services said on Thursday.
* Another cargo surveyor, AmSpec Agri Malaysia said exports from the world’s second largest producer rose 10.1% during the same period.
* Russia jolted world grain markets with an escalation in the Black Sea, mounting a third straight night of air strikes on Ukrainian ports and issuing a threat against Ukraine-bound vessels to which Kyiv responded in kind.
* Dalian’s most-active soyoil contract DBYcv1 eased 0.1%, while its palm oil contract DCPcv1 gained 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1%.
* 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 end its rally in a resistance zone of 4,103-4,122 ringgit per metric ton, as suggested by a projection analysis, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian shares fell on Friday after Tesla and Netflix weighed on U.S. tech shares after their earnings reports, while the dollar and Treasury yields held their gains ahead of an action-packed week that could see the end of the U.S. tightening cycle. MKTS/GLOB
DATA/EVENTS (GMT)
0600 UK Retail Sales MM, YY June
0600 UK Retail Sales Ex-Fuel MM June
($1 = 4.5510 ringgit)
(Reporting by Mei Mei Chu; Editing by Janane Venkatraman)
((Meifong.chu@thomsonreuters.com))
Recommended for you
