Malaysian Palm Oil Council Russia's Post

​VEGOILS-Palm rangebound as soft ringgit counters weak exports

SINGAPORE, Sept 20 (Reuters) - Malaysian palm oil futures traded in a tight range on Wednesday, as market participants weighed weak shipments from the world's second largest exporter and support from a weak ringgit.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange fell 11 ringgit, or 0.3%, to 3,738 ringgit ($796.68) per metric ton in morning trade.

FUNDAMENTALS
Malaysia, the world's second largest palm oil producer, maintained its October export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Tuesday.

Exports of Malaysian palm oil products for Sept. 1-15 fell 11.8% from a month earlier to 580,893 metric tons, cargo surveyor Intertek Testing Services said on Tuesday.

Another cargo surveyor, Amspec Agri, had said on Friday Sept. 1-15 exports fell 9.3% from the month before.

Dalian's most-active soyoil contract DBYcv1 fell 0.6%, while its palm oil contract DCPcv1 was unchanged. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 0.2%.

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, was flat against the dollar after a six-day decline.

A weak ringgit makes palm oil more affordable for buyers holding foreign currency.

Palm oil may climb into a range of 3,795-3,820 ringgit per ton, due to an extension of a bounce from the Sept. 12 low of 3,667 ringgit, said Reuters technical analyst Wang Tao.

MARKET NEWS
Asian stocks struggled for headway while 10-year U.S. Treasury yields stood at 16-year highs as surging oil prices drive inflation and set the scene for the Federal Reserve to project interest rates staying higher for longer.

Oil prices rose, hovering near 10-month highs hit the previous day, as a bigger-than-expected draw in U.S. oil stockpiles and weak U.S. shale output reinforced fears of tight crude supply for the rest of 2023.
By: via Malaysian Palm Oil Council Russia