Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm rises for second day on weaker ringgit, higher stocks limit gains

KUALA LUMPUR, Oct 13 (Reuters) - Malaysian palm oil futures rose for a second consecutive session on Thursday, lifted by a weaker ringgit and strength in rival edible oils, although rising inventories limited the gains.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange gained 26 ringgit, or 0.7%, to 3,762 ringgit ($802.82) a tonne during early trade.

FUNDAMENTALS
Palm oil prices will continue to decline to around 3,200 ringgit in the first quarter of 2023, and remain below 3,500 ringgit into the second half of that year as stocks build, said Julian McGill, head of South East Asia at LMC International.

Dalian's most-active soyoil contract DBYcv1 rose 1.4%, while its palm oil contract DCPcv1 gained 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were fell 0.3%.

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 test a support at 3,652 ringgit per tonne, a break below which could open the way towards 3,570 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Wall Street's equity indexes ended Wednesday's volatile session in the red and the dollar made little progress while bond yields fell as investors digested minutes from the latest Federal Reserve meeting and waited for a key U.S. inflation reading.
By: via Malaysian Palm Oil Council Russia