VEGOILS-Palm snaps four-day rally ahead of export data
Malaysia’s benchmark palm oil futures fell on Thursday after four straight sessions of gains, with investors awaiting Aug. 1-25 export data from cargo surveyors for further direction.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange fell 0.63% to 4,281 ringgit ($957.50) a tonne by midday trade. The contract gained 6.64% in the previous four sessions.
“Today we are mainly range-trading while awaiting further leads … a wait-and-see approach is being adopted,” a trader in Kuala Lumpur said.
Some cargo surveyors will release data on Malaysia’s Aug. 1-25 palm oil exports on Thursday.
Export data for Aug. 1-20 were mixed, with two cargo surveyors saying shipments dropped on a monthly basis, while one reported a rise.
Traders said production may have risen sharply during this period.
Soyoil prices on the Chicago Board of Trade BOc2 were up 1.21%, while Dalian’s soyoil contract DBYv1 gained 1.23% and its palm oil contract DCPv1 rose 0.28%.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
U.S. soybeans climbed on concerns over supplies from the United States, while wheat futures rose for a fifth straight session on lower supplies from the Black Sea region. GRA/
Top palm oil producer Indonesia has extended to Oct. 31 a policy of not collecting levies for palm oil exports, Trade Minister Zulkifli Hasan said on Wednesday amid efforts to encourage exports and prop up farmers’ prices for fresh palm oil.
Palm oil looks neutral in a range of 4,085-4,350 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C
Source: Reuters (Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)