Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm falls more than 1% after four-day run

KUALA LUMPUR, Jan 6 (Reuters) - Malaysian palm oil futures fell more than 1% on Thursday after four straight sessions of gains, but expectations of tightening inventories kept a floor under prices.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange slid 66 ringgit, or 1.31%, to 4,670 ringgit ($1,111.90) a tonne in early trade. It fell 0.28% overnight.

FUNDAMENTALS
The U.S. Department of Agriculture trimmed its 2021/22 crude palm oil production forecast for Malaysia to 18 million tonnes from 18.2 million tonnes, due to the effect of adverse weather from the super typhoon Rai and labour shortages.

Export is forecast to recover slightly to 16.3 million metric tonnes, though the recovery will continue to be restrained by production limitation and how quickly Malaysia is able to resolve the labour issue, the agency said in a report.

Dalian's most-active soyoil contract DBYcv1 fell 0.8%, while its palm oil contract DCPcv1 slipped 0.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.2%.

Palm oil may drop to 4,956 ringgit per tonne, due to the completion of a five-wave cycle from 4,668 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
U.S. stocks slid and Treasury yields jumped after meeting minutes released by the Federal Reserve indicated that it might not only raise interest rates sooner than expected but could also reduce its overall asset holdings to tame high inflation.
By: via Malaysian Palm Oil Council Russia