Commodities

VEGOILS-Palm oil slips on weaker October exports; MPOB data in focus

Credit: REUTERS/LIM HUEY TENG

Malaysian palm oil futures eased on Monday as early October exports declined ahead of Malaysian Palm Oil Board (MPOB) data, although the contract remained near a record high hit last week.

KUALA LUMPUR, Oct 11 (Reuters) - Malaysian palm oil futures eased on Monday as early October exports declined ahead of Malaysian Palm Oil Board (MPOB) data, although the contract remained near a record high hit last week.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange slid 23 ringgit, or 0.46%, to 4,943 ringgit ($1,186.51) a tonne during early trade.

FUNDAMENTALS

* Exports of Malaysian palm oil products for October 1-10 fell 7.6% to 528,901 tonnes from the same period in September, cargo surveyor Intertek Testing Services said on Sunday.

* The market is awaiting data from the Malaysian Palm Oil Board due later in the day with expectations of a drawdown in September inventories.

* The ringgit MYR=, palm's currency of trade, rose 0.24% against the dollar after the government lifted interstate and international travel restrictions, making the commodity more expensive for holders of foreign currency.

* Dalian's most-active soyoil contract DBYcv1 rose 0.5%, while its palm oil contract DCPcv1 gained 1.3%. Soyoil prices on the Chicago Board of Trade BOcv1 gained 0.1%.

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

MARKET NEWS

* Oil prices rose on Monday, extending multiweek gains, amid supply restraints from major producers and growing demand for fuels as economies try to recover from the COVID-19 pandemic. O/R

* Asian shares rallied on Monday courtesy of gains in China which also helped U.S. stock futures pare early losses, while rising Treasury yields lifted the dollar to a near-three-year peak against the Japanese yen. MKTS/GLOB

DATA/EVENTS

No major data/events expected on Monday

($1 = 4.1660 ringgit)

(Reporting by Mei Mei Chu; Editing by Amy Caren Daniel)

((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.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More