Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm set for fifth monthly drop amid oversupply concerns

JAKARTA, Sept 30 (Reuters) - Malaysian palm oil futures rose for a second session on Friday, tracking related edible oils and ahead of September export data from cargo surveyors, although the market was set for a fifth monthly drop on concerns about oversupply and weakening demand.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange gained 1.86% to 3,404 ringgit ($734.10) per tonne in early trade. It has lost about 9% so far this week.

Palm prices have declined about 18% so far this month, heading for their biggest monthly drop since June.

FUNDAMENTALS
Dalian's palm oil contract DCPv1 gained 1.68%, while its most active soy oil contract was little changed. Soyoil prices on the Chicago Board of Trade BOc2 ticked 0.17% lower.

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

Traders are waiting for September export data from cargo surveyors. Exports of Malaysian palm oil products for Sept. 1-25 rose between 18.6% and 20.9% from a month ago, cargo surveyors said.

Palm oil may break a resistance at 3,360 ringgit per tonne and rise into 3,427-3,477 ringgit range, as it failed twice to break a support at 3,243 ringgit, Reuters technical analyst Wang Tao said.

Indonesia plans to set its crude palm oil reference price at $792.19 per tonne for the Oct. 1-15 period, a senior official said, which would place export tax for palm oil at $33 per tonne for the period.

MARKET NEWS
Oil prices were little changed in early trade but headed for their first weekly gain in five, underpinned by a weaker U.S. dollar and the possibility that OPEC+ may agree to cut crude output when it meets on Oct. 5.

Asian shares were headed for the worst month since the onset of the COVID-19 pandemic, while jitters in currency and bond markets persisted over hawkish talk from central banks, worries about global recession and rising geopolitical risk.
By: via Malaysian Palm Oil Council Russia