Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm extends losses amid lower-than-expected US biofuel mandate

JAKARTA, June 22 (Reuters) - Malaysian palm oil futures fell for a third day on Thursday amid continued weakness in rival soyoil following lower-than-expected U.S. biofuel mandate.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange dropped 1.16% to 3,572 ringgit ($769.33) per metric ton in early trade, extending a 3.76% loss over the previous two sessions.

FUNDAMENTALS
The Biden administration on Wednesday increased the amount of biofuel that oil refiners must blend into the nation's fuel mix over the next three years, but the plan has angered the biofuel industry, which says mandates for corn-based ethanol and biodiesel are not high enough.

Soyoil prices on the Chicago Board of Trade BOc2 traded 1.28% lower. The Dalian Commodity was closed for Dragon Boat Festival holidays.

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

Malaysia has maintained its July export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday.

Malaysian palm oil products exports for June 1-20 fell 16.8% from the same period in May, cargo surveyor Intertek Testing Services said. Cargo surveyor AmSpec Agri Malaysia said exports fell 12.9%.

MARKET NEWS
Asian shares made a tentative start to Thursday after Federal Reserve Chair Jerome Powell stuck to his recent hawkish tone as investors assess the future rate policy path from the U.S. central bank.

Oil prices held on to most of the previous day's gains in early trade on Thursday as markets weighed an unexpected draw in U.S. crude oil stocks against the prospect of weaker demand after the Fed chairman hinted at further interest rate hikes.
By: via Malaysian Palm Oil Council Russia