Home / Commodities / Commodity News / Palm rises but set for 9% weekly loss on higher supply outlook

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

0600 UK Halifax House Prices MM, YY July

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)

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