Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil drops on weakness in rival oils

JAKARTA, Dec 6 (Reuters) - Malaysian palm oil futures fell on Tuesday, erasing marginal gains from the previous session to track rival oils lower despite forecast of lower stock and better exports.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange dropped 1.56% to 3,905 ringgit ($892.57) a tonne in early trade, after ending up 0.38% on Monday.

FUNDAMENTALS
Dalian's palm oil contract DCPv1 fell 2.37%, while its most active soyoil contract DBYv1 was trading sideway. Soyoil prices on the Chicago Board of Trade BOc2 gained 0.85%.

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

Malaysia's palm oil inventories at end-November likely shrank slightly from October as output slowed while imports jumped, a Reuters survey showed on Monday.

The European Union is attempting to clinch a deal on a law to prevent companies from selling into the EU market soy, beef, coffee and other commodities linked to deforestation around the world.

Palm oil is poised to break a trendline and revisit its Nov. 21 low of 3,787 ringgit a tonne, Reuters technical analyst Wang Tao said.

MARKET NEWS
Global stocks and Treasury prices fell on Monday, as new evidence of a strong U.S. economy raised fears that interest rates will stay higher for longer, eclipsing China's easing of pandemic restrictions.

Oil prices edged higher, after a G7 price cap on Russian seaborne oil came into force on Monday on top of a European Union embargo on imports of Russian crude by sea.
By: via Malaysian Palm Oil Council Russia