Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm down on profit-taking, tracks rival oils

KUALA LUMPUR, Jan 14 (Reuters) - Malaysian palm oil futures fell on Friday tracking weaker rival oils, while traders also booked profits after the contract rose to an all-time closing high on concerns of persisting labour shortage.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange lost 55 ringgit, or 1.07%, to 5,106 ringgit ($1,220.95) a tonne in early trade. It also lost 0.7% overnight, but looked set for a weekly gain.

FUNDAMENTALS
The market is on a profit-taking mode after Thursday's rally, and tracking Dalian and soyoil weakness, a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract DBYcv1 dropped almost 1%, while its palm oil contract DCPcv1 slipped 0.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.1%.

Palm oil may test a support at 5,094 ringgit per tonne, and a break below could open the way to 5,001 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares took a beating after a fresh salvo of hawkish remarks from Federal Reserve officials solidified expectations that U.S. interest rates could rise as soon as March, leaving markets braced for tighter monetary conditions.

Oil prices eased for a second session on growing concerns that Washington may soon act to cool prices, while movement controls in China to rein in a COVID-19 outbreak weighed on fuel demand.
By: via Malaysian Palm Oil Council Russia