Palm rises but set for 9% weekly loss on higher supply outlook
Malaysian palm oil futures rose on Friday, but were set for a 9% weekly loss on expectations of higher July end-stocks and rising exports from top producer Indonesia.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 66 ringgit, or 1.73%, to 3,887 ringgit ($872.70) a tonne in early trade.
* Malaysia’s palm oil inventories at end-July likely jumped to an eight-month high due to improving production and soaring imports, a Reuters survey showed on Thursday.
* The Malaysian Palm Oil Board is scheduled to release its data next week.
* Traders are expecting higher overseas shipments from Indonesia after the country lowered its crude palm oil export duty reference price for Aug. 1-15, making its products more competitive than Malaysian palm oil.
* Dalian’s most-active soyoil contract DBYcv1 fell 0.9%, while its palm oil contract DCPcv1 gained 2.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.9%.
* 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 retest a support at 3,717 ringgit per tonne, a break below which could open the way towards 3,489-3,598 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
* Oil languished near its lowest since the start of the war in Ukraine on fears of a global recession, though stocks ignored such worries, gaining ahead of U.S. jobs data that will give another clue to the health of the world’s largest economy. MKTS/GLOB
0600 Germany Industrial Output MM, YY June
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0645 France Reserve Assets Total July
1230 US Non-Farm Payrolls July
1230 US Unemployment Rate July
Source: Reuters (Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)