Malaysian palm oil price opens lower tracking weaker related oils(Update)

  • palm oil
  • Tuesday, 11 Jun 2019

KUALA LUMPUR: Malaysian palm oil futures edged lower in early trade on Wednesday, weighed down by weaker overnight soyoil on the U.S. Chicago Board of Trade (CBOT) and a fall in oil prices.     
    The benchmark palm oil contract for August delivery  on the Bursa Malaysia Derivatives Exchange was last down 0.4% at 2,000 ringgit ($480.31) per tonne.

    The Chicago July soybean oil contract had fallen 0.6% on Tuesday, and was last slightly down 0.1%.

* U.S. corn futures edged down on Wednesday after gains of nearly 3% in the previous session, but losses were checked by a larger-than-expected cut in yield forecasts by the U.S. Department of Agriculture.

* Oil prices fell on Wednesday, dragged by a weaker oil demand outlook and a rise in U.S. crude inventories despite growing expectations of ongoing OPEC-led supply cuts.

* Asian share markets got off to a cautious start on Wednesday as the White House took a tough line on a trade deal with China, just as investors were bracing for the latest batch of economic
data from the Asian giant.

* The dollar hung near an 11-week low against its peers on Wednesday, weighed by expectations the U.S. Federal Reserve could cut interest rates some time in the next few months.

* U.S. stocks ended flat and the Dow snapped a six-day winning streak on Tuesday, as investors paused following a run of gains and fresh worries emerged over the U.S. trade war with China. - Reuters

Earlier report:

KUALA LUMPUR: Malaysian palm oil futures climbed more than 1% on Tuesday, recovering from two previous sessions of sharp declines on expectations of upbeat official industry data due later this week.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 0.7% at 2,007 ringgit ($482.34) per tonne on Tuesday evening, charting its first gain in three days.

It had risen as much as 1.3% to an intraday high of 2,019 ringgit.

"The market was earlier oversold and the anticipation for supportive industry data supported a rebound (in palm prices)," said a Kuala Lumpur-based futures trader, referring to data from industry regulator and Malaysian Palm Oil Board (MPOB).

The MPOB will publish palm oil inventory, production and export data for May on June 12 after 0430 GMT instead of June 10 as previously scheduled, the MPOB said.

A Reuters survey showed Malaysia's palm oil stocks likely hit a 10-month low by end-May, falling 9.7% from April to 2.46 million tonnes, which would help support benchmark palm oil prices.

Meanwhile, production is seen easing 2% to 1.61 million tonnes from April, while exports likely rose 3.3% on-month to 1.71 million tonnes.

In other related oils, the Chicago July soybean oil contract was last trading flat at 1100 GMT, and the September soyoil contract on the Dalian Commodity Exchange edged up 0.2%.

The Dalian September palm oil contract rose 0.1%. Palm oil prices are affected by movements in related edible oils, with which it competes for global market share. - Reuters


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