Palm oil extends losses ahead of key data
By Mayank Bhardwaj
NEW DELHI, Sept 10 (Reuters) -Malaysian palm oil futures opened lower on Tuesday, extending losses from the previous session, as the market awaited a widely watched data on production and inventories.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 8 ringgit, or 0.21%, at 3,887 ringgit ($891.10) a metric ton in the early trade.
FUNDAMENTALS
* The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly data later in the day.
* Malaysia's palm oil inventories are expected to have climbed to a six-month high at end-August due to lacklustre export demand, a Reuters survey showed.
* August palm oil exports are seen at 1,376,412 tons, according to Amspec Agri.
* Indonesia, the biggest palm oil exporter, plans to lower export duties to improve competitiveness and raise farmers' income.
* Exports of Malaysian palm oil products fell 9.9% to 1,445,442 tons last month from 1,604,578 tons in July, cargo surveyor Intertek Testing Services said.
* Palm oil FCPOc3 may retest support at 3,856 ringgit per metric ton, a break below could trigger a fall to 3,833 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Oil was steady in early trade as investors weighed supply disruptions from Tropical Storm Francine and the potential for further output cuts against persistently weak Chinese demand. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* Asian stocks recouped early losses to rise following Wall Street's overnight rally, though concerns about a still-struggling Chinese economy kept sentiment in check. MKTS/GLOB
DATA/EVENTS (GMT)
0600 Germany HICP Final YY Aug
0600 UK Claimant Count Unem Chng Aug
0600 UK ILO Unemployment Rate July
0600 UK HMRC Payrolls Change Aug
China Exports YY Aug
China Imports YY Aug
China Trade Balance USD Aug
($1 = 4.3620 ringgit)
Reporting by Mayank Bhardwaj; Editing by Sherry Jacob-Phillips
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
