VEGOILS-Palm rebounds nearly 2% on stronger rival oils, rising exports
SINGAPORE, Aug 21 (Reuters) – Malaysian palm oil futures recovered on Monday, mirroring the strength in rival edible oils, while firm export data supported sentiment.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was up 72 ringgit, or 1.9%, at 3,943 ringgit ($847.96) per metric ton as of the midday break, paring losses from the previous session.
Exports of Malaysian palm oil products for Aug. 1-20 rose 9.8% to 827,975 metric tons from the same period a month earlier, cargo surveyor Intertek Testing Services said on Sunday.
Dalian’s most-active soyoil contract DBYcv1 rose 0.9%, while its palm oil contract DCPcv1 was up 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 1.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Bean oil markets firmed as dry weather in the United States threatened to impact supply during the critical pod-filling season, while floods in China damaged crops, cutting corn and soybean production, said Mitesh Saiya, trading manager at Mumbai-based firm Kantilal Laxmichand and Co.
As such, consumers mostly switched to palm as it remains the most affordable alternative, Saiya said.
The Malaysian ringgit MYR=, palm’s currency of trade, weakened 0.11% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
The European Union said last Thursday it had launched an investigation into whether biodiesel from Indonesia was circumventing EU duties by going through China and Britain.
Palm oil FCPOc3 may break a support of 3,861 ringgit per metric ton and fall to the next support of 3,778 ringgit, said Reuters technical analyst Wang Tao. TECH/C
($1 = 4.6500 ringgit)
(Reporting by Carman Chew; Editing by Savio D’Souza)
((carman.chew@thomsonreuters.com; +6582011860))
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