Malaysian Palm Oil Council Russia's Post

​VEGOILS-Palm extends declines on weaker rival oils, growing supply

SINGAPORE, Aug 23 (Reuters) - Malaysian palm oil futures continued to slide on Wednesday, dragged lower by softer rival oils and increased output from South Peninsular palm oil mills.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange slipped 32 ringgit, or 0.83%, to 3,834 ringgit ($824.34) per metric ton in early trade, down for a second consecutive day.

FUNDAMENTALS
Malaysia maintained its export tax for crude palm oil for September at 8% and increased its reference price, according to a Malaysian Palm Oil Board circular.

Production at South Peninsular Palm Oil Mills Association mills showed better recovery than anticipated during Aug. 1-20, up 7% from last month.

Dalian's most-active soyoil contract DBYcv1 dipped 0.2%, while its palm oil contract DCPcv1 lost 1.1%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.3%.

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

The Malaysian ringgit MYR=, palm's currency of trade, softened 0.11% to 4.65 against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.

Palm oil FCPOc3 may test a support of 3,778 ringgit per metric ton, a break below which could open the way towards 3,676 ringgit, said Reuters technical analyst Wang Tao.

MARKET NEWS
Asian shares held tight ranges on Wednesday as investors awaited results from tech darling Nvidia to see if the sector's lofty valuations can withstand a jump in bond yields, while still gloomy factory readings from Japan left sentiment fragile.
By: via Malaysian Palm Oil Council Russia