VEGOILS-Palm is on the rise, but is expected to drop weekly due to lower exports
SINGAPORE, October 15 (Reuters) – Malaysian palm oil futures were expected to experience their first weekly decline in four, even as prices rallied slightly on Friday thanks to a weaker ringgit and gains in rival oils.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange rose 24 ringgits, or 0.5%, to 4,901 ringgits ($ 1,179.83) per tonne at the start of trading, after falling nearly 3% in from the previous session.
“This is due to overnight gains in foreign markets and the weak ringgit,” a Kuala Lumpur-based trader told Reuters.
Chicago Board of Trade soybean futures rose overnight, finding chart support after steep losses in the past two sessions due to higher-than-expected US grain supply forecasts. The soybean oil contract BOc2 was down 0.3% for the last time.
Meanwhile, the Dalian Commodity Exchange’s most active soybean oil contract DBYcv1 rose 0.5%, while its palm oil contract DCPcv1 decreased by 0.7%.
Palm oil is affected by fluctuations in the prices of related oils, as they compete for a share of the global vegetable oil market.
The ringgit MYR = fell against the dollar after six straight sessions of gains. A lower ringgit makes the palm tree more attractive to foreign currency holders.
The trader said weaker export prospects were limiting palm oil gains.
Malaysian palm oil product exports from Oct. 1-10 fell 9.4% from the same period a month earlier, freight expert Societe Generale de Surveillance said on Tuesday.
Falling exports caused palm prices to drop this week. The benchmark palm contract is down 0.8% so far this week after three straight weeks of gains.
* Palm oil FCPOc3 could retest resistance at 5,048 ringgits per tonne, a break above which could lead to a gain in the range of 5,187 to 5,274 ringgits. TECH / C
* US soybean futures fell slightly on Friday and were on the verge of weekly losses of more than 3% as forecasts of abundant global supplies offset hopes of a surge in Chinese demand. GR /
DATA / UPCOMING EVENTS (GMT)
0645 France IPC (EU standard) Final MM YY Sept
1000 EU reserve assets Total Seven
1230 US Retail Sales MM Sept
1400 US U Mich Sentiment Prelim Oct
($ 1 = 4.1540 ringgits)
(Reporting by Fathin Ungku; Editing by Subhranshu Sahu)
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