VEGOILS-Palm oil opens higher on rival oil strength
By Dewi Kurniawati
JAKARTA, Oct 30 (Reuters) – Malaysian palm oil futures opened higher on Monday, following two consecutive sessions of gains, underpinned by strength in rival edible oils.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange went up 19 ringgit, or 0.50%, to 3,794 ringgit ($798.40) a metric ton in the morning trade.
The contract posted third consecutive weekly gain of 0.11% on Friday.
FUNDAMENTALS
* Palm oil on the European vegetable oils market was bullish on Friday following stronger Malaysian palm oil futures as strength in China’s edible oil market supported prices, while lacklustre demand for the tropical products limited gains in prices.
* Indonesia’s August palm oil exports, including refined products, stood at 2.07 million metric tons, down 55% from the same month last year, association GAPKI said in a statement on Friday.
* Soyoil prices on the Chicago Board of Trade BOcv1 increased 0.57%.
* Dalian’s most-active soyoil contract DBYcv1 was up 1.31%, while its palm oil contract DCPcv1 was also up 0.97%
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Indonesia on Friday flew its first commercial flight using palm-oil blended jet fuel on a Boeing 737-800NG aircraft operated by flag carrier Garuda Indonesia from its capital Jakarta to Surakarta in Central Java.
* The Malaysian ringgit MYR=, palm’s currency of trade, strengthened 0.5% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
* Oil prices slipped $1 a barrel on Monday as investors adopted caution ahead of the Fed policy meeting and China’s manufacturing data later this week, offsetting support from geopolitical tensions in the Middle East. O/R
* Stronger crude makes palm a more attractive option for biodiesel feedstock.
* Malaysian palm oil product exports for Oct. 1-Oct. 25 were estimated to have fallen between 1.1% and 3.1% from a month earlier, data from independent inspection company AmSpec Agri Malaysia and Intertek Testing Services showed on Wednesday last week.
* Palm oil FCPOc3 may break a resistance at 3,795 ringgit per metric ton and rise into the 3,822-3,842 ringgit range, said Reuters technical analyst Wang Tao. TECH/C
DATA/EVENTS (GMT)
1000 EU Consumer Confid. Final Oct
1300 Germany CPI Prelim YY Oct
1300 Germany HICP Prelim YY Oct
Bank of Japan holds a monetary policy meeting to Oct. 31
($1 = 4.7520 ringgit)
(Reporting by Dewi Kurniawati; Editing by Rashmi Aich)
((Dewi.Kurniawati@thomsonreuters.com))
Source Link: https://www.nasdaq.com/articles/vegoils-palm-oil-opens-higher-on-rival-oil-strength
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