VEGOILS-Palm oil extends gains on strong exports, tight stockpiles
KUALA LUMPUR, July 11 (Reuters) – Malaysian palm oil futures rose for a second session on Tuesday, underpinned by improving export demand and a slower-than-anticipated rise in inventories.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.56%, to 3,942 ringgit ($845.74) a tonne during early trade.
FUNDAMENTALS
* Malaysia’s palm oil inventories at the end of June rose 1.9% to 1.72 million metric tons from the previous month, much smaller than expected, the Malaysian Palm Oil Board data showed on Monday.
* Exports from Malaysia during the July 1-10 period rose between 18.7% and 26.1%, data from cargo surveyors Amspec Agri and Intertek Testing Services showed on Monday.
* The condition of U.S. soybean crops improved over the past week after rains in the parched U.S. crop belt, though they remained the worst in more than a decade and spring wheat conditions worsened, the U.S. government data showed on Monday.
* Soyoil prices on the Chicago Board of Trade BOcv1 eased after a 4.3% overnight surge. Dalian’s most-active soyoil contract DBYcv1 rose 0.7% while its palm oil contract DCPcv1 gained 1.3%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may rise to 4,039 ringgit per metric ton, as its uptrend from 3,512 ringgit has resumed, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian shares bounced and the safe-haven dollar edged lower as investors hoped this week’s U.S. inflation data supports an imminent end to rate hikes and cheered the prospect China will deliver economic stimulus to prop up stalling growth. MKTS/GLOB
DATA/EVENTS (GMT)
0600 Germany HICP Final YY June
0600 UK Claimant Count Unem Chng June
0600 UK ILO Unemployment Rate May
0600 UK HMRC Payrolls Change June
0900 Germany ZEW Economic Sentiment July
0900 Germany ZEW Current Conditions July
($1 = 4.6610 ringgit)
(Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips)
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