Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm slips as exports slump, lower inventories limit losses

KUALA LUMPUR, Jan 11 (Reuters) - Malaysian palm oil futures eased on Tuesday as cargo surveyor data showing a tumble in Jan. 1-10 exports outweighed support from a sharp decline in inventories.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange slid 22 ringgit, or 0.44%, to 5,007 ringgit in early trade.

FUNDAMENTALS
The market is supported by tight supplies amid heavy rains and flooding in Peninsular Malaysia, with a miller's association pegging production for the first five days of January lower by 45.75% month-on-month, but the upside is capped by weaker demand amid persistently high palm prices, Refinitiv Agriculture Research said in a note on Monday.

Malaysia's palm oil stocks at the end of December fell steeper than expected, down 12.9% from the month before, as production nosedived to its lowest in nine months, Malaysian Palm Oil Board data showed on Monday, further tightening inventories for 2022.

Exports for Jan. 1-10 fell 41.6% to 334,750 tonnes from the same period in December, cargo surveyor Intertek Testing Services said on Monday.

Dalian's most-active soyoil contract DBYcv1 gained 0.3%, while its palm oil contract DCPcv1 rose 0.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.4%, after declining 1.3% overnight.

Palm oil may test a support at 4,927 ringgit per tonne, a break below which could open the way towards 4,806 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian equities and the dollar struggled to find direction on Tuesday, with attention squarely on the timing and pace of U.S. monetary policy normalisation, but investors took some comfort from a late rebound in U.S. stock markets.
By: via Malaysian Palm Oil Council Russia