Palm falls further on weakness of rival edible oils
KUALA LUMPUR, Dec 19 (Reuters) -Malaysian palm oil futures fell on Thursday for a fifth straight session, weighed down by weakness in rival edible oils.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange slid 54 ringgit, or 1.19%, to 4,475 ringgit ($994.44) a metric ton in early trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract DBYcv1 fell 3.01%, while its palm oil contract DCPcv1 shed 2.16%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.25%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
* The ringgit MYR=, palm's currency of trade, weakened 0.74% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
* India extended the suspension of trading in derivative contracts for key farm commodities including crude palm oil and rapeseed until January, as the world's largest importer of vegetable oils and a major producer of wheat and rice seeks to curb food inflation.
* Indonesia's plan to expand its biodiesel mandate from Jan. 1, which has fuelled concerns it could curb global palm oil supplies, looks increasingly likely to be implemented gradually, analysts said, as industry participants seek a phase-in period.
* Oil prices fell in early trading after the U.S. Federal Reserve signalled that it would slow the pace of interest rate cuts in 2025, potentially impacting fuel demand. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Palm oil may fall into 4,273 ringgit to 4,370 ringgit per metric ton, driven by a wave c, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks slid, bond yields rose and the dollar was perched near a two-year high after the Federal Reserve cautioned it would ease the pace of rate cuts in the coming year and investors braced for a Bank of Japan policy decision. MKTS/GLOB
DATA/EVENTS
0745 France Business Climate Mfg Dec
0745 France Business Climate Overall Dec
1200 UK BOE Bank Rate Dec
1330 US GDP Final Q3
1330 US Initial Jobless Clm 14 Dec, w/e
1330 US Philly Fed Business Indx Dec
1500 US Existing Home Sales Nov
Japan JP BOJ Rate Decision 19 Dec
($1 = 4.5000 ringgit)
Reporting by Ashley Tang; Editing by Subhranshu Sahu
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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