Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil slides, set for second weekly decline on weaker rival oils

KUALA LUMPUR, Dec 23 (Reuters) - Malaysian palm oil futures slid on Friday in subdued trade ahead of a long weekend, setting it on course for a second weekly loss weighed by weaker rival Dalian edible oils.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange slumped 66 ringgit, or 1.69%, to 3,832 ringgit ($865.99) a tonne during early trade.

For the week, the contract has declined 2.25% so far.

FUNDAMENTALS
Indonesia's 2022 palm oil exports are estimated at 34.67 million tonnes, down from last year's 37.78 million tonnes, partly due to a temporary export stoppage in April, the chief executive of its palm oil fund (BPDPKS) said on Thursday.

The gradual easing of Indonesia's export restrictions would see shipments return to normal at around 36 million tonnes to 38 million tonnes in 2023, he said.

China's abrupt abandonment of its zero-COVID policy in the face of protests and a widening outbreak has left the world's most populous nation scrambling to avert a collapse of its public health system, and denting demand for commodities.

Dalian's most-active soyoil contract DBYcv1 fell 2.1%, while its palm oil contract DCPcv1 slipped 3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.5%.

Bursa Malaysia will be closed on Dec. 26 for Christmas holidays and will resume trading on Dec. 27.

Palm oil may test a support at 3,806 ringgit per tonne, with a good chance of breaking below this level and falling into 3,721-3,762 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
U.S. stocks tanked and the dollar eked out a small gain on Thursday as solid economic data fueled worries that the Federal Reserve's monetary policy will hover at restrictive levels for longer than many market participants may have hoped.
By: via Malaysian Palm Oil Council Russia