Malaysian Palm Oil Council Russia's Post

​VEGOILS-Palm tracks rival edible oils lower, softer ringgit caps losses

SINGAPORE, Sept 21 (Reuters) - Malaysian palm oil futures fell on Thursday to hit their lowest level in more than a week, as weaker crude and rival edible oils outweighed support from strong exports and a softer ringgit.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange declined 1%, or 37 ringgit, to 3,683 ringgit ($785.62) per metric ton in morning trade, hitting its lowest level since Sept. 13.

FUNDAMENTALS
Exports of Malaysian palm oil products for Sept. 1-20 rose 2.4% from Aug. 1-20, cargo surveyor Intertek Testing Services said on Wednesday.

Independent inspection company AmSpec Agri Malaysia said exports during the same period rose 1.8%.

The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.13% against the dollar, making the commodity more attractive for foreign currency holders.

Oil prices fell further as U.S. interest rate hike expectations offset the impact of drawdowns in U.S. crude stockpiles.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract DBYcv1 fell 2.3%, while its palm oil contract DCPcv1 was down 1%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.7%.

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 revisit its Sept. 12 low of 3,667 ringgit per ton, as a bounce triggered by the support at 3,695 ringgit has been almost reversed, said Reuters technical analyst Wang Tao.

MARKET NEWS
Asian stocks followed Wall Street's lead, dipping across the board as investors interpreted the U.S. Federal Reserve's latest policy statements as signalling higher-for-longer interest rates.
By: via Malaysian Palm Oil Council Russia