Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm recoups losses on weaker ringgit, higher output expectations weigh

KUALA LUMPUR, May 23 (Reuters) - Malaysian palm oil futures gained on Tuesday, recouping some of the previous session's losses, as the ringgit weakened, although expectations of higher production weighed on the market.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 25 ringgit, or 0.73%, to 3,453 ringgit ($778.58) a tonne in early trade.

FUNDAMENTALS
"China and India have seen a decrease in their palm oil inventories and import margins have improved," Refinitiv Agriculture Research said in a note late on Monday.

On production, Refinitiv said widespread dryness and warmth have been observed in the region, which should facilitate harvesting and crop evacuation.

The ringgit MYR=, palm's currency of trade, fell 0.26% against the dollar, making the commodity cheaper for holders of foreign currency.

Dalian's most-active soyoil contract DBYcv1 fell 0.5%, while its palm oil contract DCPcv1 gained 0.03%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.2%.

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

Palm oil may retest a resistance at 3,498 ringgit per tonne, a break above which could lead to a gain to 3,563 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Wall Street shares were mixed on Monday and European stocks finished little-changed as talks in Washington resumed to avert a U.S. default, while gold prices retreated under pressure from hawkish remarks by Federal Reserve officials.
By: via Malaysian Palm Oil Council Russia