Palm oil snaps three days of losses after strong exports data
On July 26, Malaysian palm oil futures rebounded, rising 33 ringgit (0.84%) to 3,951 ringgit ($848.04) after three days of declines. The gain was supported by strong export data and increases in related oils. Despite this recovery, the contract is set to end the week down by 1%. Exports of Malaysian palm oil for July 1-25 increased by 31% year-on-year. The rise in oil prices and robust economic data also contributed to the rebound.
BEIJING, July 26 (Reuters) -Malaysian palm oil futures on Friday regained some ground lost this week, helped by robust exports and tracking a rise in other oils.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange climbed 33 ringgit or 0.84% to 3,951 ringgit ($848.04) during early trade, snapping three days of losses.
Even so, the contract is poised to lose 1% for the week.
FUNDAMENTALS
* Exports of Malaysian palm oil products for July 1-25 rose 31% year on year, cargo surveyors Intertek Testing Services and Amspec Agri said on Thursday.
* Dalian’s most-active soyoil contract DBYcv1 gained 1.4%, while its palm oil contract DCPcv1 rose 1.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.5%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices were up slightly on Friday on stronger-than-expected U.S. economic data that raised investor expectations for increasing crude oil demand from the world’s largest energy consumer.
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. O/R
* Palm oil may test resistance at 3,953 ringgit per metric ton, a break above which could open the way towards 3,977 ringgit to 4,017 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* World stock indexes mostly fell in choppy trading Thursday, adding to losses after a tech-led selloff in the previous session, while the Japanese yen drifted near flat after reaching a 2 1/2-month high against the U.S. dollar. MKTS/GLOB
DATA/EVENTS (GMT)
0500 Japan Leading Indicator Revised May
1230 US Consumption, Adjusted MM June
1230 US Core PCE Price Index MM June
1230 US Core PCE Price Index YY June
1230 US PCE Price Index MM June
1230 US PCE Price Index YY June
1400 US U Mich Sentiment Final Jul
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