Palm ends virtually unchanged after range-bound trade
BEIJING, June 24 (Reuters) – Malaysian palm oil futures closed flat on Monday, erasing early gains due to lackluster exports and ongoing weakness in rival edible oils. The benchmark September contract FCPOc3 on Bursa Malaysia ended 1 ringgit lower at 3,899 ringgit ($827.99) per ton. Concerns over global vegetable oil market dynamics were highlighted as Dalian’s soyoil DBYcv1 fell 0.33% and palm oil DCPcv1 dropped 0.73%, while Chicago Board of Trade’s soyoil prices BOcv1 edged up 0.07%. Dry conditions in the Black Sea and adverse U.S. weather may affect sunflower and corn yields, impacting global supplies.
BEIJING, June 24 (Reuters) -Malaysian palm oil futures reversed early gains on Monday after range-bound trade to end flat as poor exports and continued weakness in competing edible oils weighed on the contract.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange closed 1 ringgit lower, or 0.03%, at 3,899 ringgit ($827.99) a ton.
“(Palm oil futures) have tracked the downturn in other vegetable oil futures, such as vegetable oil futures in the Chinese Dalian exchange,” LSEG Agriculture Research said in a note.
Top producer Indonesia’s palm oil exports in April were 2.18 million metric tons, up 2.06% from a year earlier, the Indonesia Palm Oil Association (GAPKI) said on Monday.
April crude palm oil output was 4.11 million tons, versus 4.1 million tonnes in March, it said.
Exports from second largest producer Malaysia during June 1-20 fell between 8.1% and 12.9% from a month earlier, independent inspection company AmSpec Agri Malaysia and Intertek Testing Services said last week.
Traders are awaiting estimates for exports for June 1-25, due on Tuesday.
“Some market players anticipate Malaysia’s full-June exports will outperform May due to the attractive palm oil pricing, leading to increased purchases,” LSEG said.
In related oils, Dalian’s most-active soyoil contract DBYcv1 fell 0.33%, while its palm oil contract DCPcv1 fell 0.73%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.07%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Forecast dryness in the Black Sea region’s breadbasket is likely to stunt sunflower and corn yields, while heavy rain in the United States after near-record temperatures threaten to take a toll on crops, hitting world supplies and pushing prices higher.
Crude oil prices firmed slightly as traders weighed support from expected summer demand and geopolitical tensions against a stronger dollar. O/R
Higher crude oil futures make palm a more attractive option for biodiesel feedstock.
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-ends-virtually-unchanged-after-rangebound-trade-53866464
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