Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm rises over 3%, set for second weekly slump on weak export fears

KUALA LUMPUR, July 15 (Reuters) - Malaysian palm oil futures gained more than 3% early on Friday, clawing back gains from the previous session, although the contract is set for a weekly slump on expectations of slow exports as rival Indonesia pushes to increase shipments.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 106 ringgit, or 2.97%, to 3674 ringgit a tonne during early trade.

For the week, the contract has slumped 11.8%, down for a second consecutive week.

FUNDAMENTALS
Indonesia plans to bring in new rules on its palm oil export levy and incentives soon to boost exports and empty storage tanks, an official said, the latest attempt to boost shipments after the ending of an export ban in May.

Dalian's most-active soyoil contract DBYcv1 rose 2.7%, while its palm oil contract DCPcv1 fell 0.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.6%.

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

Oil prices rose amid uncertainty around how aggressive the U.S. Federal Reserve will be in hiking interest rates to combat rampant inflation, making palm an attractive option for biodiesel feedstock.

Palm oil may test a resistance at 3,782 ringgit per tonne, a break could open the way towards 3,900-3,999 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian stocks hit a two-year low on Friday and were heading for a weekly loss, while the dollar was set for its third week of gains as a fresh slew of rate hikes around the world deepened worry about the outlook for global economic growth.
By: via Malaysian Palm Oil Council Russia