Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil tracks rivals higher to extend gains

JAKARTA, Oct 26 (Reuters) - Malaysian palm oil futures rose for a third session on Wednesday as the market tracked rival oils higher despite sluggish exports this month.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 2.25% to 4,220 ringgit ($892.18) per tonne in early trade.

FUNDAMENTALS
Dalian's most active soyoil contract DBYcv1 rose 0.95%, while its palm oil contract DCPc1 gained 1.44%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.27%.

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

Exports of Malaysian palm oil products for Oct. 1-25 fell 3.5%, compared with shipments on Sept. 1-25, cargo surveyor Intertek Testing Services said on Tuesday, while Societe Generale de Surveillance reported on Wednesday exports eased 0.6%.

Meanwhile, independent inspection company AmSpec Agri Malaysia said palm oil products exports in Oct. 1-25 rose 6.6%.

Palm oil may retest a support of 4,114 ringgit per tonne, with a good chance of breaking below this level and falling towards 4,001-4,071 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Chicago wheat slid for a third consecutive session on Wednesday, trading near a five-week low with expectations of higher Black Sea supplies and improved U.S. weather weighing on the market.

Oil prices fell in early trade on Wednesday as the dollar firmed and as industry data showing U.S. crude oil stockpiles rose more than expected reinforced fears of a global recession that would cut demand.

Wall Street continued its advance on Tuesday as weak data stoked hopes the Federal Reserve will slow its aggressive pace of interest rate hikes and European shares notched a second day of gains as better-than-expected earnings offset economic worries.
By: via Malaysian Palm Oil Council Russia