Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm rises from 14-month closing low, but set for weekly loss

KUALA LUMPUR, Sept 9 (Reuters) - Malaysian palm oil futures were set for a second straight weekly drop, even as prices rose on Friday after tumbling to a 14-month closing low in the previous session.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange gained 77 ringgit, or 2.17%, to 3,618 ringgit ($804.89) a tonne in early trade after three consecutive sessions of losses.

Palm has fallen 7.6% so far this week, as investors are worried that COVID-19-related restrictions in some parts of key buyer China would hit demand amid rising supply.

FUNDAMENTALS
Trader are awaiting the Malaysian Palm Oil Board to release August supply and demand data on Monday. They have factored in polls indicating inventories expanding above 2 million tonnes for the first time in two years.

The Chinese city of Chengdu extended a lockdown for a majority of its more than 21 million residents on Thursday to prevent further transmission of COVID-19 while millions more in other parts of China were told to shun travel in upcoming holidays.

Dalian's most-active soyoil contract DBYcv1 rose 0.4%, while its palm oil contract DCPcv1 fell 0.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1%.

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 bounce to 3,666 ringgit ($815.57) per tonne, before resuming its downtrend, as it has found a support at 3,489 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares crept higher as the dollar eased, with markets turning calmer after a record interest rate hike from the European Central Bank and hawkish comments from the U.S. Federal Reserve chairman reinforced bets of aggressive tightening ahead.
By: via Malaysian Palm Oil Council Russia