Malaysian Palm Oil Council Russia's Post

​VEGOILS-Palm opens stronger on Dalian support, weaker ringgit

JAKARTA, Sept 27 (Reuters) - Malaysian palm oil futures opened higher on Wednesday, supported by gains in rival Dalian oils, as well as a weaker ringgit.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange rose 19 ringgit, or 0.51%, to 3,711 ringgit ($788.90) a metric ton in early trade.

FUNDAMENTALS
Dalian's most-active soyoil contract DBYcv1 rose 0.35%, while its palm oil contract DCPcv1 increased 0.36%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.21%.

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

The ringgit MYR=, palm's currency of trade, fell against the U.S. dollar, making palm oil more attractive for foreign currency holders.

Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for Sept. 1-25 rose 17.5% to 1.1 million tons from 974,235 tons shipped during the same period in August.

According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for Sept. 1-25 rose 15.2% to 1.09 million tons from 945,155 tons shipped during Aug. 1-25.

Official data showed the EU 2023/24 palm oil imports stood at 821,115 tons by Sept. 24, compared with 902,142 tons last year.

According to Refinitiv Commodities Research, a worsening drying trend will emerge in October for Indonesia, the biggest palm oil producer in the world.

Palm oil may test a support zone of 3,636 ringgit to 3,650 ringgit per metric ton, a break below could open the way towards 3,561 ringgit, according to Reuters' technical analyst Wang Tao.

MARKET NEWS
Oil prices ticked up in early trade, as markets focused on supply tightness heading into winter and a "soft landing" for the U.S. economy.

Asia stocks traded mixed and benchmark U.S. Treasury yields were near multi-year highs, as investors sour on both stocks and bonds amid worries about the impact of higher-for-longer interest rates.
By: via Malaysian Palm Oil Council Russia