Palm opens lower on weaker Dalian oils and stronger ringgit
Malaysian palm oil futures experienced a slight decline, with the benchmark contract for December delivery dropping 4 ringgit to 4,267 ringgit ($997.43) per metric ton. This decrease was influenced by weaker Dalian edible oils and a stronger ringgit, despite gains in crude oil and Chicago soyoil. Market analysts noted that palm oil may face further losses, potentially falling to a range of 4,119 to 4,152 ringgit per metric ton as recent uptrends reverse.
KUALA LUMPUR, Oct 9 (Reuters) -Malaysian palm oil futures fell slightly on Wednesday, weighed by weaker Dalian edible oils and a stronger ringgit, although gains in crude oil and Chicago soyoil capped the decline.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange fell 4 ringgit, or 0.09%, to 4,267 ringgit ($997.43) a metric ton by 0239 GMT. The contract dropped 1.22% in overnight trade.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 fell 0.77%, while its palm oil contract DCPcv1 lost 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.86%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
* The ringgit MYR=, palm’s currency of trade, strengthened 0.12% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
* Oil prices steadied in Asian trading, as traders weighed uncertainty surrounding developments in the Middle East conflict against continued bearish fundamentals. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* Implementation of higher biodiesel mandates in Indonesia, the world’s biggest palm oil producer, is likely to tighten supplies of the vegetable oil, a leading industry analyst said.
* Companies that have paid to source agricultural produce that complies with the European Union’s anti-deforestation law would lose out if the EU decides to delay implementing the legislation by a year, industry groups and traders said.
* Palm oil may extend loss into a range of 4,119 ringgit to 4,152 ringgit per metric ton, as an uptrend from the Sept. 30 low of 3,987 ringgit has reversed, Reuters technical analyst Wang Tao said. TECH/C
Source Link : https://www.xm.com/research/markets/allNews/reuters/palm-opens-lower-on-weaker-dalian-oils-and-stronger-ringgit-53941558
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