Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil tracks weak Dalian oils, exports to drop 4%

KUALA LUMPUR, July 13 (Reuters) - Malaysian palm oil futures dropped more than 4% on Wednesday, down for a second consecutive session, dragged by a plunge in rival Dalian oils and further weighed down by weak July exports.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 171 ringgit, or 4.15%, to 3,945 ringgit ($890.32) a tonne in early trade.

FUNDAMENTALS
Malaysia's palm oil stocks at end-June rose to their highest in seven months as its exports were throttled by rival Indonesia's policies to boost its own shipments, industry regulator data showed on Tuesday.

Exports from the world's second-largest producer during July 1-10 fell between 15% and 21% from a month-ago period, cargo surveyors said.

Dalian's most-active soyoil contract DBYcv1 fell 5.3%, while its palm oil contract DCPcv1 plunged 6.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.6%.

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

Palm oil may stabilize around a support at 3,900 ringgit per tonne, and test a resistance at 4,090 ringgit thereafter, Reuters technical analyst Wang Tao said.

MARKET NEWS
World stocks traded mixed while oil prices and bond yields dipped on Tuesday as traders fretted over prospects of further central bank tightening and worries about the health of economies worldwide.
By: via Malaysian Palm Oil Council Russia