VEGOILS-Palm oil closed down 3% on stronger ringgit, weaker rival oils
Updates with closing price, adds closing quote in paragraph 4
JAKARTA, July 31 (Reuters) – Malaysian palm oil futures closed down 3.02% on Monday, following a stronger ringgit and weaker rival oils, although the contract booked a monthly gain.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange shed 3.02% to 3,885 ringgit ($861.99) per tonne at the closing price, its weakest level in more than a month. The contract logged a 2.53% monthly gain.
“After last week’s rally on Russian-Ukraine news, the market seems to be taking a breather, alongside the strengthened ringgit,” a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract DBYcv1was down 2.12%, while its palm oil contract DCPcv1 dropped 2.38%. Soyoil prices on the Chicago Board of Trade BOc2 lost 2.51%.
Malaysia’s palm oil exports for July rose 7.8% from the month before, according to AmSpec Agri Malaysia, while cargo surveyor Intertek Testing Services (ITS) showed a 14% rise in exports for July.
Oil prices hovered near three-month highs on Monday, set to post their biggest monthly gain in more than a year on expectations that Saudi Arabia would extend voluntary output cuts into September and tighten global supply. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil FCPOc3 may bounce to 4,057 ringgit per metric ton, before resuming its downward trend to retest a support at 3,964 ringgit. TECH/C
($1 = 4.5070 ringgit)
(Reporting by Fransiska Nangoy and Dewi Kurniawati; Editing by Nivedita Bhattacharjee and Sonia Cheema For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E)
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