Commodities

VEGOILS-Palm oil gains on fears of tightening global edible oil supply

Credit: REUTERS/LIM HUEY TENG

Malaysian palm oil futures firmed on Monday, extending last week's gains as labour shortage in Malaysia and dry weather in several major edible oil producing countries stoked fears about tightening global supplies.

KUALA LUMPUR, July 19 (Reuters) - Malaysian palm oil futures firmed on Monday, extending last week's gains as labour shortage in Malaysia and dry weather in several major edible oil producing countries stoked fears about tightening global supplies.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 24 ringgit, or 0.58%, to 4,161 ringgit ($989.07) a tonne during early trade, after rising 6.3% last week.

The Malaysian bourse will be closed on Tuesday for a public holiday.

FUNDAMENTALS

* Malaysia, the world's second largest palm oil exporter, typically enters its peak production months during the third quarter of the year, but output of the edible oil is expected to remain below potential in July due to a labour shortage.

* Hot, dry weather in the United States is pushing up prices of soybeans on the Chicago Board of Trade as the crop approaches its key pod-setting phase. GLOBAL-GRAINS/

* Soyoil prices on the Chicago Board of Trade BOcv1 were up 1%. Dalian's most-active soyoil contract DBYcv1 rose 1.4%, while its palm oil contract DCPcv1 gained 1.6%.

* 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 test a resistance at 4,260 ringgit per tonne, a break above could lead to a gain into a range of 4,352 ringgit to 4,525 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares slipped to a one-week low on Monday and perceived safe haven assets, including the yen and gold, edged higher amid fears of rising inflation and a surge in coronavirus cases, while oil prices fell on oversupply worries. MKTS/GLOB

DATA/EVENTS

1400 US NAHB Housing Market Index July

($1 = 4.2070 ringgit)

cpohttps://tmsnrt.rs/3zacOc7

(Reporting by Mei Mei Chu; editing by Vinay Dwivedi)

((Meifong.chu@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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