VEGOILS-Palm gains over 2% on recovery of Dalian edible oils
SINGAPORE, Aug 24 (Reuters) – Malaysian palm oil futures surged on Thursday, snapping a two-day downturn, on the back of higher prices of bean and palm oil on the Dalian exchange.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange jumped 86 ringgit, or 2.22%, to 3,915 ringgit ($843.75) per metric ton in early trade, paring losses from the previous session.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 strengthened 2.6%, while its palm oil contract DCPcv1 grew 1.9%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.1%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Malaysia maintained its export tax for crude palm oil for September at 8% and increased its reference price, according to a Malaysian Palm Oil Board circular.
* Production at South Peninsular Palm Oil Mills Association mills showed better recovery than anticipated during Aug. 1-20, up 7% from last month.
* Palm oil FCPOc3 may approach its Aug. 21 high of 3,978 ringgit per metric ton, as it has stabilised around a support of 3,820 ringgit, said Reuters technical analyst Wang Tao. TECH/C
MARKET NEWS
* Asian shares rallied on Thursday after blockbuster results from tech darling Nvidia NVDA.O boosted Wall Street and a retreat in U.S. bond yields eased pressure on borrowing costs globally. MKTS/GLOB
* Oil prices slipped in early Asian trade on Thursday as weak manufacturing data in major economies outweighed optimism around a larger-than-expected drop in U.S. crude stocks. O/R
DATA/EVENTS (GMT)
0500 Japan Chain Store Sales YY July
0645 France Business Climate Mfg, Overall Aug
1230 US Durable Goods July
1230 US Initial Jobless Clm Weekly
($1 = 4.6400 ringgit)
(Reporting by Carman Chew; Editing by Sonia Cheema)
((carman.chew@thomsonreuters.com; +6582011860))
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