Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil firms on weather worries, stronger ringgit caps gains

KUALA LUMPUR, Nov 15 (Reuters) - Malaysian palm oil futures rebounded on Tuesday, supported by concerns over stormy weather hurting output, although gains were capped by a stronger ringgit that sparked heavy losses in the previous session.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 52 ringgit, or 1.26%, to 4,164 ringgit ($907.39) a tonne during early trade.

FUNDAMENTALS
The ringgit MYR=, palm's currency of trade, rose for a third day against the dollar, making the commodity more expensive for holders of other currencies.

Disruptions to palm oil supplies because of tropical storms in top producers Indonesia and Malaysia are expected to continue into the first quarter of 2023, keeping prices strong, the Malaysian Palm Oil Board (MPOB) said on Monday.

MPOB warned of a tough 2023 for the market, with the persistence of global uncertainties in weather, geopolitics and economics that have caused wide price swings this year.

India's palm oil imports in 2021/22 fell 4.8% from a year earlier as overseas buying of soyoil jumped 45.3% to a record high after Indonesia restricted shipments of palm oil, a trade body said on Monday.

Dalian's most-active soyoil contract DBYcv1 fell 0.8%, while its palm oil contract DCPcv1 was down 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.3%.

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

MARKET NEWS
Asian share markets were mixed on Tuesday and oil was weaker as investors sought to digest the economic implications of China's COVID policy adjustments and a rescue package for the country's struggling property sector.
By: via Malaysian Palm Oil Council Russia