Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm falls for third day, hits near-one-month low

JAKARTA, May 31 (Reuters) - Malaysian palm oil futures plunged for a third straight session on Wednesday and hit their lowest in nearly a month.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange fell 3.03% to 3,289 ringgit ($744.08) per tonne in morning trade.

The contract looked set to book a third monthly drop after extending losses from its worst day in two weeks on weaker rival edible oil prices and expectations of rising output in May.

FUNDAMENTALS
Malaysia's exports during May 1-25 fell 0.7% from the same period in April, cargo surveyor Intertek Testing Services said on Friday. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.7%.

May production is expected to rise between 20% and 30% from April, rebounding from the lows seen during the Raya holidays, analysts said.

Dalian's most-active soyoil contract DBYcv1 fell 4.11%, while its palm oil contract DCPcv1 was down 4.39%. Soyoil prices on the Chicago Board of Trade BOcv1 dropped 1.32%.

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

Palm oil FCPOc3 may revisit its April 28 low of 3,288 ringgit per tonne, as it has broken key support of 3,363 ringgit, said Reuters technical analyst Wang Tao.

MARKET NEWS
Asia's stock markets slid toward a second month of losses in a row on Wednesday, and even the glittering Nikkei paused, as weak Chinese factory activity fed growing doubts about the post-pandemic recovery in the world's second-biggest economy.
By: via Malaysian Palm Oil Council Russia