VEGOILS-Palm falls to near six-week low on weakening rival oils
KUALA LUMPUR, Aug 8 (Reuters) – Malaysian palm oil futures slipped for a second session on Tuesday, tracking heavy losses in rival edible oils, to hit their lowest in nearly six weeks.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 33 ringgit, or 0.87%, to 3,739 ringgit ($817.98) per metric ton in early trade, its lowest since June 28.
FUNDAMENTALS
* Weekly condition ratings for the U.S. soybean crop improved in the past week more than analysts expected, U.S. government data showed on Monday.
* The USDA rated 54% of the soybean crop as good to excellent, up from 52% last week, above the average analyst estimate of 53%.
* Soyoil prices on the Chicago Board of Trade BOcv1 ticked down following a 2.7% overnight drop. Dalian’s most-active soyoil contract DBYcv1 lost 1.6%, while its palm oil contract DCPcv1 slumped 2.4%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices rose in early trade as supply concerns arising from production cuts by Saudi Arabia and Russia supported the market. O/R
* The ringgit MYR=, palm’s currency of trade, fell 0.31% against the dollar, making the commodity cheaper for buyers holding foreign currency.
MARKET NEWS
* Asian share markets were mostly weaker while the U.S. dollar higher as investors awaited inflation readings from China and the United States to deliver an updated outlook on the health of the global economy. MKTS/GLOB
DATA/EVENTS (GMT)
0300 China Trade Balance USD July
0600 Germanay HICP Final YY July
1230 US International Trade June
($1 = 4.5710 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)
Source Link :- https://www.nasdaq.com/articles/vegoils-palm-falls-to-near-six-week-low-on-weakening-rival-oils
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