Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil drops as survey signals high inventories

KUALA LUMPUR, Sept 6 (Reuters) - Malaysian palm oil futures eased on Tuesday after a survey signalled that inventories swelled above 2 million tonnes for the first time in more than two years, while weak soyoil prices and extended lockdowns in China also weighed on sentiment.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 24 ringgit, or 0.61%, at 3,892 ringgit ($867.20) a tonne during early trade, hovering near a one-month low hit last week.

FUNDAMENTALS
Malaysia's palm oil inventories at end-August jumped 14.5% to 2.03 million tonnes, the highest since April 2020, a Reuters survey showed on Monday.

"Bearish sentiments were also caused by China's recent lockdowns to control fresh COVID-19 outbreaks, including Chengdu city and other key port cities such as Dalian and Shenzhen, fuelling fears over weaker demand and imports," Refinitiv Commodities Research said in a note late Monday.

Dalian's most-active soyoil contract DBYcv1 rose 0.8%, while its palm oil contract DCPcv1 fell 0.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.4%.

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 retest a resistance at 4,000 ringgit per tonne, a break above may lead to gain into the range of 4,085 ringgit to 4,452 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares rose on Tuesday after China pledged to make renewed efforts to boost its economy on Monday, while investors pinned hope on more clarity ahead of a number of central bank meetings.
By: via Malaysian Palm Oil Council Russia