Palm tracks rival vegetable oils lower
Malaysian palm oil futures fell 0.75% to 4,780 ringgit ($1,072.23) per metric ton on December 16, pressured by declines in rival vegetable oils and weak export data. Intertek Testing Services reported a 9.8% drop in Malaysian palm oil exports from December 1-15. Lower crude oil prices and a slight weakening of the ringgit further influenced the market.
KUALA LUMPUR, Dec 16 (Reuters) -Malaysian palm oil futures opened lower on Monday, tracking weakness in rival vegetable oils and weighed down by downbeat cargo surveyor data.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange slid 36 ringgit, or 0.75%, to 4,780 ringgit ($1,072.23) a metric ton in early trade, extending losses to a second session.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 fell 0.66%, while its palm oil contract DCPcv1 shed 0.35%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.4%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
* Cargo surveyor Intertek Testing Services said on Sunday exports of Malaysian palm oil products for Dec. 1-15 fell 9.8% from a month earlier to 671,454 metric tons.
* Cargo surveyor AmSpec Agri Malaysia is expected to release its estimates for Malaysian palm oil exports during the Dec. 1-15 period later in the day.
* Oil futures eased from their highest levels in weeks as investors awaited a meeting of the Federal Reserve later this week for indication of further rate cuts. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The ringgit MYR=, palm’s currency of trade, fell 0.02% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
MARKET NEWS
* Asian share markets were in a wary mood as surging bond yields challenged equity valuations, particularly for the richly priced tech sector, in a week packed with central bank meetings and major economic data. MKTS/GLOB
DATA/EVENTS
0430 Japan Tertiary Ind Act NSA Oct
0815 France HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Dec
0830 Germany HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Dec
0900 EU HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Dec
0930 UK Flash Composite PMI, Flash Manufacturing PMI, Flash Services PMI Dec
1100 EU Reserve Assets Total Nov
1445 US S&P Global Mfg PMI Flash, Global Svcs PMI Flash, Global Comp Flash PMI Dec
UK House Price Rightmove MM, House Price Rightmove YY Dec
($1 = 4.4580 ringgit)
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Source : XM
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