Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm falls on weak rival oils, strong ringgit; set for weekly loss

JAKARTA, Dec 2 (Reuters) - Malaysian palm oil futures dropped for a second day on Friday as continued strength in the ringgit and lower related vegetable oils weighed, with the benchmark contract being on track for a weekly decline.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange fell 1.67% to 4,010 ringgit ($913.44) a tonne in early trade.

For the week so far, it is down 3.16%.

FUNDAMENTALS
Soyoil prices on the Chicago Board of Trade BOc2 were down 0.76% on Friday, extending losses after a day earlier it posted its biggest drop in a day since July. Dalian's most active soyoil contract DBYv1 fell 2.53%, while its palm oil contract DCPv1 slumped by 3.49%.

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

The ringgit MYR= strengthened for a third day against the U.S. dollar, hitting its best level since early June. A stronger ringgit makes palm oil less attractive for holders of foreign currencies.

Meanwhile, sunflower oil's discount to rival soyoil has widened this week to the highest level in more than 9 months as leading exporters Ukraine and Russia aggressively offered the oil to bring down their stocks, industry officials told Reuters.

Malaysian palm oil exports in November rose between 1.7% and 5.6% from the month before, according to data from cargo surveyors Intertek Testing Services, Amspec Agri and Societe Generale de Surveillance.

MARKET NEWS
Oil prices edged lower in early Asian trade as the U.S. dollar pared some losses, while easing COVID-19 curbs in two Chinese cities limited losses.

Asian shares were flat and Treasuries held onto gains ahead of the U.S. non-farm payrolls data, the next big test for investors looking for more signs of a shift from the Federal Reserve, while the dollar nursed heavy losses.
By: via Malaysian Palm Oil Council Russia