VEGOILS-Palm gains after two-day loss, MPOB data in focus
By Mei Mei Chu
KUALA LUMPUR, Aug 9 (Reuters) – Malaysian palm oil futures rose on Wednesday after two straight sessions of sharp losses, with traders awaiting Malaysian Palm Oil Board (MPOB) data due on Thursday for further direction.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 12 ringgit, or 0.32%, to 3,705 ringgit ($809.31) per metric ton by the midday break.
Refinitiv Agriculture Research said it was widely expected that supplies would gradually improve during the high crop season, increasing stock levels in the second half of 2023.
“However, industry players expressed their views that H2 recovery might be lower than expected,” it said in a note, adding that the steady export trend would likely continue.
“The increased demand is partly due to refiners increasing their purchases for upcoming festivals and uncertainty over supplies from the Black Sea.”
The MPOB is scheduled to release July supply and demand data on Thursday. A Reuters survey estimated July inventories to rise 4.2% from the month before to a five-month high of 1.79 million tonnes as production climbed.
In top producer Indonesia, consumption of palm oil-based biodiesel in the first six months of this year was 5.41 million kilolitres, data from palm oil fund agency BPDPKS showed.
Dalian’s most-active soyoil contract DBYcv1 gained 0.5%, while its palm oil contract DCPcv1 rose 0.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.03%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
($1 = 4.5780 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)
((Meifong.chu@thomsonreuters.com))
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