VEGOILS-Palm oil breaks three-day gaining streak as stocks rise

Malaysian palm oil futures snapped a three-session gaining streak on Wednesday, after data showed stocks rose in July despite higher-than-expected exports.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange fell 13 ringgit, or 0.32%, to 4,106 ringgit ($921.66) per tonne.
The contract had gained 8% over the previous three sessions.

Malaysia’s end-July palm oil stocks rose to an eight-month peak on the back of improving production and soaring imports, according to data from industry regulator the Malaysian Palm Oil Board (MPOB).

Crude palm oil production climbed 1.84% to 1.57 million tonnes from June levels, while palm oil exports grew 10.72% to 1.32 million tonnes, MPOB said.

“Exports rose much higher than expected notching just over 10% rise, compared with average expectation of 3.12% rise,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

Iran, India, Turkey, Kenya and the Philippines were top buyers, taking advantage of palm in the absence of sunflower oil from the Black Sea, he added.

Dalian’s most-active soyoil contract DBYcv1 was up 0.32%, while its palm oil contract DCPcv1 fell 0.59%. Soyoil prices on the Chicago Board of Trade BOcv1 slipped 0.27%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Source: Reuters (Reporting by Chen Lin Additional reporting by Fransiska Nangoy in Jakarta Editing by Sherry Jacob-Phillips and Vinay Dwivedi)