Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm drops to over five-week low on weaker rival oils

JAKARTA, March 20 (Reuters) - Malaysian palm oil futures dropped for a third straight session on Monday to the lowest in more than five weeks, tracking weakness in rival vegetable oils.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange lost 62 ringgit, or 1.58%, to 3,858 ringgit ($862.89) a tonne in early trade.

The contract fell for two consecutive weeks last Friday, losing 4.23% for the week amid fears that the closure of several U.S banks and trouble at Swiss lender Credit Suisse would blow up into a global banking crisis.

FUNDAMENTALS
Exports of Malaysian palm oil products for March 1-15 rose between 55% and 72% from the same period in February, as shipments to India jumped ahead of the Muslim festival of Eid, according to cargo surveyors data.

Top producer Indonesia said it will enforce domestic market obligation to ensure palm oil producers sell 450,000 tonnes of cheap cooking oil at home in March to secure supply ahead of Islamic festivities, after missing the target in February.

Dalian's most active soyoil contract DBYcv1 slid 0.02%, while its palm oil contract DCPcv1 dropped 0.98%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.59%.

Palm oil FCPOc3 may break a support of 3,892 ringgit per tonne, and fall into a range of 3,810-3,856 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Futures and Asian stocks fought to stablise, though banks remained under pressure on Monday as a rescue deal for Credit Suisse and a concerted effort by central banks to restore confidence eased immediate fears of a contagion.
By: via Malaysian Palm Oil Council Russia