Malaysian Palm Oil Council Russia's Post

​VEGOILS-Palm declines on stronger ringgit, soyoil weakness

SINGAPORE, Oct 25 (Reuters) - Malaysian palm oil futures fell for a third consecutive session on Wednesday, weighed down by a stronger ringgit and tracking weakness in rival soyoil amid pressure from U.S. soybean harvest.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 17 ringgit, or 0.5% to 3,650 ringgit ($765.20) per metric ton in morning trade.

FUNDAMENTALS
A quick harvest pace for U.S. soy is likely to boost supplies of the oilseed and its products, including soyoil. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Farmers had harvested 76% of their soybean crop by Sunday, the U.S. Department of Agriculture (USDA) said after trading ended on Monday. The figures, roughly in line with trade expectations, were ahead of the five-year average pace for each crop.

Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.2%, reaching the lowest level in four months.

Dalian's most-active soyoil contract DBYcv1 fell 0.9%, while its palm oil contract DCPcv1 was down 1.2%.

The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.3% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.

Palm oil may bounce to 3,720 ringgit per metric ton, as a wave c from 3,772 ringgit may have completed at the Tuesday low of 3,651 ringgit, said Reuters technical analyst Wang Tao.

MARKET NEWS
China led Asia's stock markets higher as investors cheered the approval of a trillion-yuan sovereign bond issue as a harbinger of stimulus, while the Aussie dollar hit a two-week high as hotter-than-expected inflation lifted rate forecasts.
By: via Malaysian Palm Oil Council Russia