Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil falls 2% on stronger soybean harvest, ringgit

SINGAPORE, Oct 24 (Reuters) - Malaysian palm oil futures fell on Tuesday as rapidly advancing U.S. soybean harvest and a strengthening ringgit weighed on prices, although strong demand curbed losses.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 74 ringgit, or 2% to 3,679 ringgit ($770.15) a metric ton in early trade, and were on track for a second session of decline.

FUNDAMENTALS
Rapidly advancing U.S. soybean harvest 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 of the global vegetable oils market.

U.S. farmers had harvested three-quarters of their soybean crop and 59% of their corn by Sunday, according to weekly data from the U.S. Department of Agriculture (USDA) on Monday.

The figures, roughly in line with trade expectations, were ahead of the five-year average pace for each crop.

The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.3% against the dollar. A strong ringgit makes palm oil less attractive for foreign currency holders.
However, rising demand for palm oil is likely to prevent deeper losses.

Exports of Malaysian palm oil products for Oct. 1-20 were estimated to have risen between 7.9% and 9.9% from a month earlier, data from AmSpec Agri Malaysia and Intertek Testing Services showed.

Dalian's most-active soyoil contract DBYcv1 fell 1.5%, while its palm oil contract DCPcv1 was down 1.7%.

Soyoil prices on the Chicago Board of Trade BOcv1 fell 1.1%, its lowest in four months.

MARKET NEWS
Asian equities slipped to their lowest in more than 11 months on Tuesday, while the dollar wobbled in cautious trading ahead of a slew of economic data that will provide clues to the next steps from the U.S. Federal Reserve.
By: via Malaysian Palm Oil Council Russia