Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil falls from near five-week peak, tight Indonesian supply limits losses

KUALA LUMPUR, Jan 4 (Reuters) - Malaysian palm oil futures slid on Wednesday from a near five-week high hit in the previous session, although concerns over tightening supply from top producer Indonesia capped losses.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange lost 50 ringgit, or 1.18%, to 4,203 ringgit ($954.36) a tonne during early trade.

FUNDAMENTALS
India's palm oil imports in December jumped 94% from a year earlier to a record high for the month as palm oil's higher discount to rival vegetable oils led refiners to raise purchases during the seasonally weak winter period, five dealers said.

Exports of Malaysian palm oil products for December fell 0.5% to 1,512,468 tonnes from 1,519,560 tonnes shipped during November, cargo surveyor Societe Generale de Surveillance said on Tuesday.

Exports from top producer Indonesia are expected to soften this year after a latest ruling to protect domestic supplies reduced the amount of overseas shipments allowed.

Dalian's most-active soyoil contract DBYcv1 fell 0.7%, while its palm oil contract DCPcv1 slipped 0.1%. Soyoil prices on the Chicago Board of Trade BOcv1 ticked up after a 1.4% overnight loss.

Palm oil may fall to 4,109 ringgit per tonne, as it faces a strong resistance at 4,289 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian equities rose on Wednesday, while the dollar was on the back foot after a steep spike overnight, with investors keenly awaiting minutes from the Federal Reserve's most recent meeting to gauge the path forward for interest rates.
By: via Malaysian Palm Oil Council Russia