Palm falls on Dalian weakness, set for second weekly drop
KUALA LUMPUR, Nov 22 (Reuters) -Malaysian palm oil futures opened lower for a third consecutive session on Friday and were on track for a second weekly loss, pressured by weakness in rival Dalian oils.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange slid 61 ringgit, or 1.28%, to 4,711 ringgit a metric ton in early trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract DBYcv1 fell 1.15%, while its palm oil contract DCPcv1 shed 1.01%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.09%.
* Palm oil tracks the price movements of rival edible oils as they compete for a share of the global vegetable oils market.
* Oil prices rose after Russia said it had fired a ballistic missile at Ukraine and warned of a broadening conflict, raising the prospect of tightening crude supplies. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* The ringgit MYR=, palm's currency of trade, weakened 0.2% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
* Indonesia's palm oil stocks climbed in September as exports and domestic consumption declined, while output improved slightly, data from the main palm oil industry association GAPKI showed.
* Palm oil may retest support at 4,647 ringgit per metric ton, a break below which could open the way towards the 4,510 ringgit to 4,595 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Gold was headed for its largest weekly gain in nearly eight months on Friday and the euro hovered at a 13-month low as Russia lowered its threshold for using nuclear weapons and fired a hypersonic ballistic missile at Ukraine. MKTS/GLOB
DATA/EVENTS
0700 Germany GDP Detailed QQ SA, YY NSA Q3
0700 UK Retail Sales MM, YY Oct
0700 UK Retail Sales Ex-Fuel MM Oct
0815 France HCOB Mfg, Serv, Comp Flash PMIs Nov
0830 Germany HCOB Mfg, Serv, Comp Flash PMIs Nov
0900 EU HCOB Mfg, Serv, Comp Flash PMIs Nov
0930 UK Flash Comp, Mfg, Serv PMIs Nov
1445 US S&P Global Mfg, Serv, Comp Flash PMIs Nov
1500 US U Mich Sentiment Final Nov
Reporting by Ashley Tang; Editing by Savio D'Souza
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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