Commodities

VEGOILS-Palm oil slips on likely lower exports, weaker ringgit limits losses

Credit: REUTERS/LIM HUEY TENG

Malaysian palm oil futures eased on Wednesday on a likely decline in July exports so far, but a weaker ringgit and supply worries due to a labour shortage limited losses.

KUALA LUMPUR, July 21 (Reuters) - Malaysian palm oil futures eased on Wednesday on a likely decline in July exports so far, but a weaker ringgit and supply worries due to a labour shortage limited losses.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange fell 6 ringgit, or 0.14%, to 4,145 ringgit ($977.59) a tonne in early trade.

FUNDAMENTALS

* The ringgit MYR=, palm's currency of trade, fell 0.43% against the dollar to its lowest since August 2020, making palm more attractive to holders of foreign currencies.

* Market talks ahead of cargo surveyors' July 1-20 export data due this week estimate shipments from Malaysia to decline about 7% from the same period in June.

* Palm oil production risks coming in below potential due to the effect of lower fertiliser usage over the last two years and a worker shortage in Malaysia, Ong Chee Ting, analyst at Maybank Kim Eng said in a note.

* Dalian's most-active soyoil contract DBYcv1 rose 0.3%, while its palm oil contract DCPcv1 gained 0.64. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1%.

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

MARKET NEWS

* Asian shares and U.S. Treasury yields rose on Wednesday, clawing back some of the week's losses as investors reassessed economic worries, but the dollar was firm on concerns over the impact of a fast-spreading coronavirus variant. MKTS/GLOB

DATA/EVENTS

2350 Japan Trade Data YY June

Bank of Japan Deputy Governor Masayoshi Amamiya delivers

speech, holds news conference

($1 = 4.2370 ringgit)

($1 = 4.2400 ringgit)

(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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