Palm oil gains after two-day slide, but set for weekly loss
Malaysian palm oil futures rose slightly on Friday but are set for their second consecutive weekly decline due to a stronger ringgit. The October palm oil contract on the Bursa Malaysia Derivatives Exchange increased by 5 ringgit (0.13%) to 3,875 ringgit ($851.65) per metric ton. However, it has fallen 1.31% this week. A stronger ringgit has made palm oil less attractive to foreign buyers. Malaysian palm oil exports for July are estimated to have risen significantly, and prices are expected to test support levels around 3,849 ringgit per metric ton.
JAKARTA, Aug 2 (Reuters) -Malaysian palm oil futures rose on Friday after two sessions of falls, but were on track for their second straight weekly fall due to a stronger ringgit.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 5 ringgit, or 0.13%, to 3,875 ringgit ($851.65) a metric ton by 0241 GMT.
The contract has fallen 1.31% so far in the week.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 was down 0.13%, while its palm oil contract DCPcv1 gained 0.67%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.39%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.
* Indonesia’s plan to revise domestic market obligation (DMO) rules for palm oil will not affect the DMO export ratio. Export quotas are set at four times the volume of palm oil that companies supply locally. Extra allotments are given to companies that sell in smaller, household-friendly sizes.
* The ringgit, palm’s currency of trade, strengthened 0.42% against the U.S. dollar, making the vegetable oil less attractive for foreign currency holders.
* Malaysian palm oil exports in July were 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.
* Palm oil is expected to retest support at 3,849 ringgit per metric ton, a break below which could open the way towards 3,809 ringgit, Reuters technical analyst Wang Tao said TECH/C.
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-oil-gains-after-twoday-slide-but-set-for-weekly-loss-53896470
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