VEGOILS-Palm oil extends losses for fifth day as rivals weigh
JAKARTA, July 31 (Reuters) – Malaysian palm oil futures fell for a fifth consecutive session on Monday, after they tracked weaker rivals and as market participants awaited July export data, although the contract was set for a monthly gain.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange shed 2.07% to 3,923 ringgit per tonne in the early trade, its weakest levels in nearly two weeks.
So far this month, the contract has risen 3.43%.
FUNDAMENTALS
* Dalian’s most-active soyoil contract declined 1.88%, while its palm oil contract dropped 2.12%. Soyoil prices on the Chicago Board of Trade lost 1.52%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Cargo surveyors are expected to release palm oil export data starting later in the day.
* Malaysia’s palm oil exports during July 1-25 rose 10.8% from the month before, according to AmSpec Agri Malaysia, while data from cargo surveyor Intertek Testing Services this week showed a 17.8% rise in exports for the same period.
* Oil prices hovered near three-month highs on Monday, set to post their biggest monthly gains in more than a year on expectations that Saudi Arabia would extend voluntary output cuts into September and tighten global supply. [O/R]
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* Palm oil may bounce to 4,057 ringgit per metric ton, before resuming its downtrend and retesting a support at 3,964 ringgit. [TECH/C]
MARKET NEWS
* Asian shares looked to end the month on a firm note on Monday in a week littered with major economic releases, central bank meetings and earnings updates from mega caps Amazon and Apple, though rising Japanese bond yields posed a risk. [MKTS/GLOB]
DATA/EVENTS (GMT) 0130 China NBS Manufacturing PMI
July 0900 EU
HICP Flash YY
July 0900 EU
HICP-X F, E, A & T Flash MM, YY July 0900 EU
GDP Flash Prelim QQ, YY
Q2 (Reporting by Fransiska Nangoy) ((Fransiska.Nangoy@thomsonreuters.com;)) Keywords: ASIA VEGOILS/
Recommended for you
