VEGOILS-Palm marginally higher on rival edible oil gains, weak ringgit
SINGAPORE, Aug 30 (Reuters) – Malaysian palm oil futures extended gains on Wednesday aided by the strength in rival edible oils and a softer ringgit.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange strengthened 9 ringgit, or 0.23%, to 3,939 ringgit ($849.84) per metric ton in early trade.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 fell 0.1%, while its palm oil contract DCPcv1 climbed 0.6%. Soyoil prices on the Chicago Board of Trade BOcv1rose 0.2%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* European Union soybean imports in the 2023/24 season had reached 2.16 million metric tons by Aug. 27, up 10% from 1.96 million tons a year earlier, data published by the European Commission showed on Tuesday.
* India is poised for its lowest monsoon rains in eight years, with the El Niño weather pattern seen crimping September precipitation after an August that is on track to be the driest in more than a century, two weather department officials told Reuters on Monday.
* The Malaysian ringgit MYR=, palm’s currency of trade, firmed 0.17% against the dollar, but remained near an over one-month low. A weaker ringgit generally makes palm oil more attractive for foreign currency holders.
* Palm oil FCPOc3 may break a resistance at 3,963 ringgit per metric ton, and rise into the 4,017-4,050 ringgit range, said Reuters technical analyst Wang Tao. TECH/C
MARKET NEWS
* Asian equities rose on Wednesday and the dollar wobbled as weak U.S. labour data bolstered bets that the Federal Reserve was likely done with its interest rate hikes, while beaten down China stocks rose for a third straight day. MKTS/GLOB
* Oil prices extended gains on Wednesday after industry data showed a large draw in crude inventories in the U.S., the world’s biggest fuel consumer, and as concerns about a hurricane in the Gulf of Mexico kept investors on edge. O/R
DATA/EVENTS (GMT)
0130 Australia Building Approvals July
0130 Australia Building Approvals Total YY July
0900 EU Consumer Confid. Final Aug
1200 Germany CPI Prelim YY Aug
1200 Germany HICP Prelim YY Aug
1230 US GDP 2nd Estimate Q2
($1 = 4.6350 ringgit)
Source Link :- https://www.nasdaq.com/articles/vegoils-palm-marginally-higher-on-rival-edible-oil-gains-weak-ringgit
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