Palm drops over 3% on weakness of rival vegetable oils
KUALA LUMPUR, Nov 21 (Reuters) -Malaysian palm oil futures fell more than 3% in early trade on Thursday, tracking weakness in rival vegetable oils.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange slid 151 ringgit, or 3.14%, to 4,664 ringgit ($1,044.57) a metric ton.
The contract declined 2.21% in the previous session.
FUNDAMENTALS
* Dalian's most-active soyoil contract DBYcv1 fell 1.41%, while its palm oil contract DCPcv1 shed 3.52%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.53%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
* Oil prices edged higher, due to supply concerns triggered by escalating geopolitical tensions amid the ongoing war between Russia and Ukraine. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* The ringgit MYR=, palm's currency of trade, strengthened 0.16 % against the dollar, making the commodity more expensive for buyers holding foreign currencies.
* U.S. soybean futures hit a two-week low on Wednesday and fell more than 3% on expectations of plentiful South American soy harvests this year along with uncertainty about demand for soy-based biodiesel fuel, analysts said.
* Palm oil may break support at 4,732 ringgit per metric ton, and fall into 4,647 ringgit to 4,679 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian equities fell after AI darling Nvidia disappointed investors with a subdued revenue forecast, while the dollar firmed and bitcoin hit a record high in anticipation of U.S. President-elect Donald Trump's proposed policies.
DATA/EVENTS
0745 France Business Climate Mfg, Overall Nov
1330 US Initial Jobless Clm Weekly
1330 US Philly Fed Business Indx Nov
1500 EU Consumer Confid. Flash Nov
1500 US Existing Homes Sales Oct
($1 = 4.4650 ringgit)
Reporting by Ashley Tang; Editing by Rashmi Aich
For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E
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