Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm drops on profit-taking, but set for weekly gain

JAKARTA, Jan 20 (Reuters) - Malaysian palm oil futures were set for a weekly gain, even as prices fell on Friday, weighed down by profit-taking ahead of the Lunar New Year holiday.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange lost 19 ringgit, or 0.49%, to 3,870 ringgit ($902.10) a tonne in early trade. The contract has risen about 0.9% so far this week.

FUNDAMENTALS
Malaysian palm oil prices are set to fall in 2023 to average 3,800 ringgit a tonne, down 23% from last year amid a mild recovery in production, but will likely remain above pre-pandemic levels as Indonesian policies constrict global supplies, Reuters poll showed.

Malaysian palm oil exports for Jan. 1-15 fell between 28% and 37% from the same period in December as shipments to key markets India and China tumbled, cargo surveyors said this week.

Dalian's most-active soyoil contract DBYcv1 gained 0.62%, while its palm oil contract DCPcv1 was up 0.43%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.41%.

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

Oil prices rose on optimism that the U.S. Federal Reserve will ends its tightening cycle, buoying the economy and boosting fuel demand.
Stronger crude futures make palm a more attractive option for biodiesel feedstock.

Malaysia's financial markets will be closed on Jan. 23 and 24 for the Lunar New Year holidays. Trading will resume on Wednesday, Jan. 25.

MARKET NEWS
Most Asian equity markets edged higher, while the U.S. dollar hung near its weakest level since May, with investors fretting about the risks of a global recession as the Federal Reserve presses on with interest rate increases.
By: via Malaysian Palm Oil Council Russia