Palm oil falls for second session as firmer ringgit weighs
Malaysian palm oil futures fell 0.82% to 3,876 ringgit ($852.24) per metric ton on August 1, marking the second consecutive session of decline. This drop follows a 0.18% decrease in July. The weaker performance is attributed to a stronger Malaysian ringgit and declines in rival vegetable oils. However, July exports are expected to rise between 22.8% and 30.91%, with SGS estimating 1.48 million tons, a 23.6% increase from June.
JAKARTA, Aug 1 (Reuters) -Malaysian palm oil futures dropped for a second consecutive session on Thursday as a stronger ringgit and weakness in rival vegetable oils pressured the contract.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange lost 32 ringgit, or 0.82%, to 3,876 ringgit ($852.24) a metric ton by 0235 GMT.
The contract fell 0.18% in July, the second consecutive monthly drop.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 was down 0.21%, while its palm oil contract DCPcv1 dropped 0.74%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.1%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
* Malaysian ringgit, the contract currency of trade, strengthened 0.96% against the U.S. dollar, making the contract less attractive for foreign currency holders.
* Malaysian palm oil exports in July seen rising between 22.8% and 30.91%, cargo surveyor Amspec Agri and Intertek Testing Services said.
* Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports stood at 1.48 million tons, according to LSEG, a 23.6% jump from June exports.
* Palm oil FCPOc3 is expected to retest support at 3,881 ringgit per metric ton, a break below could open the way towards 3,849 ringgit, Reuters technical analyst Wang Tao said TECH/C.
MARKET NEWS
* Asian shares tracked a huge revival in global tech stocks, helped by Meta and Nvidia, while prospects of imminent policy easing in the U.S. boosted global bonds and commodities. MKTS/GLOB
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-oil-falls-for-second-session-as-firmer-ringgit-weighs-53895045
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