Palm oil recovers on supply concerns, firmer Indonesian exports

Reuters

Palm oil recovers on supply concerns, firmer Indonesian exports

28 Ago, 2024 a las 3:59 a. m. GMT

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SINGAPORE, Aug 28 (Reuters) - Malaysian palm oil futures regained footing on Wednesday, buoyed by concerns of tightening productionand higher Indonesian exports, although a mixed global demand outlook limited gains.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 19 ringgit, or 0.48%, to 3,942 ringgit ($907.88) a metric ton, rising for a fifth time in six sessionsas of 0300 GMT.

FUNDAMENTALS

* Traders are concerned about a smaller harvest in Indonesia following reports that dry weather and aging trees may hurt production in the world's biggest palm oil grower.

* Indonesia's June palm oil exports rose 71.8% from May to 3.385 million metric tons, but were down 1.88% from a year ago, data from the Indonesia Palm Oil Association showed.

* Malaysia's palm oil product exports for Aug. 1-25 declined between 14.1% and 14.9% from a month earlier, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed on Monday.

* Indonesia's president elect Prabowo Subianto said that European Union's deforestation regulation, which can potentially curb EU imports of Indonesian palm oil once implemented, is a "blessing in disguise". Indonesia will use more of its palm oil output for biodiesel, he added.

* Prabowo hopes to implement the mandatory 50% palm oil-based biodiesel blending by early 2025, which he said would cut fuel imports by $20 billion per year.

* Indonesia's trade ministry is mulling a plan to adjust its palm oil export tax to make the commodity more competitive amid weak global demand, Bisnis.com reported on Monday.

* Dalian's most-active soyoil contract DBYcv1 gained 0.66%, while its palm oil contract DCPcv1 edged 0.07% lower. Soyoil prices on the Chicago Board of Trade BOcv1 ticked up 0.22%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Palm oil may retrace into the range of 3,819 ringgit-3,864 ringgit per ton, following its failure to break resistance at 3,966 ringgit and a falling trendline, said Reuters technical analyst Wang Tao. TECH/C

MARKET NEWS

* Global stocks were poised near record highs on Wednesday, with the next move riding on results at chipmaking market darling Nvidia, while sterling notched a 2-1/2 year high as traders bet that Britain will lag the U.S. in cutting interest rates. MKTS/GLOB

DATA/EVENTS (GMT)

1000 France Unemp Class-A SA July

($1 = 4.3420 ringgit)

cpo https://tmsnrt.rs/3X0xxg5

Reporting by Gabrielle Ng; Editing by Sumana Nandy

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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