Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm edges lower on weaker rival oils, eyes weekly gain

SINGAPORE, Feb 10 (Reuters) - Malaysian palm oil futures edged lower on Friday, as losses in rival vegetable oils on the Dalian Commodity Exchange weighed on sentiment, but the benchmark contract was still set to end the week higher.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange slid 100 ringgit, or 2.52%, to 3,873 ringgit ($895.28) a tonne in early trade. The contract has gained about 0.6% so far in the week.

FUNDAMENTALS
The weekly U.S. export data released by the U.S. Department of Agriculture (USDA) on Thursday showed sales of soybeans fell to 644,400 tonnes from 927,951 tonnes.

Dalian's most-active soyoil contract DBYcv1 fell 1.92%, while its palm oil contract DCPcv1 gave up 2.54%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.07%.

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 exports likely slumped 21.7% to 1.15 million tonnes due to slowing shipments to largest consumers India and China, a Reuters survey showed on Monday.

The Malaysia Palm Oil Board (MPOB) and cargo surveyors are scheduled to release key supply and demand data at 0430 GMT on Friday.

Oil prices fell in early trade but were headed for a weekly gain, with the market continuing to seesaw between fears of a recession hitting the United States and hopes for strong fuel demand recovery in China, the world's top oil importer.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Palm oil FCPOc3 may drop to 3,888 ringgit per tonne, following the completion of a flat pattern from the Jan. 25 low of 3,721 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asia-Pacific stocks fell on Friday, slumping toward a second weekly loss as investors fretted about the potential for further Federal Reserve tightening and the effect on the U.S. economy.
By: via Malaysian Palm Oil Council Russia