Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil eases as crude weakens, set for weekly loss

KUALA LUMPUR, Nov 26 (Reuters) - Malaysian palm oil futures slipped on Friday on course for a weekly decline, weighed down by weaker crude and rival oil prices.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange slid 23 ringgit, or 0.47%, to 4,904 ringgit ($1,157.42) a tonne during early trade.

The contract is down 1.8% for the week, after posting two straight weekly jumps, also hurt by a forecast for stronger production of top vegetable oils next year.

FUNDAMENTALS
Exports of Malaysian palm oil products for Nov. 1-25 rose between 4.5% and 10.9% from the same period in October, according to cargo surveyors' data on Thursday.

The pace of shipments, however, have slowed down from a monthly rise of between 9% and 18% seen during Nov. 1-20.

Oil prices slid more than 1% on concerns that a global supply surplus could swell in the first quarter following a coordinated release of crude reserves among major consumers.

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

Dalian's most-active soyoil contract DBYcv1 fell 0.2%, while its palm oil contract DCPcv1 slipped 0.5%. The Chicago Board of Trade BOcv1 was closed for a public holiday.

The ringgit MYR=, palm's currency of trade, fell 0.2% against the dollar, making the edible oil cheaper for holders of foreign currency.

Palm oil may break a support at 4,902 ringgit per tonne, and fall to the next support at 4,827 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Stocks fell and headed for their largest weekly drop in nearly two months, while safe haven assets such as bonds and the yen rallied as a new virus variant added to swirling concerns about future growth and higher U.S. interest rates.
By: via Malaysian Palm Oil Council Russia