Palm extends losses to fourth day amid bearish outlook – Mettis Global Link

September 27, 2022: Malaysian palm oil futures extended losses to a fourth session on Tuesday, following a warning by a leading industry analyst that prices would plunge by more than 30% by the end of this year amid soft demand and ample supply.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange fell 2.29% to 3,460 ringgit ($751.03) a tonne in early trade. It declined 8.9% in the previous three sessions.

FUNDAMENTALS

* Malaysian palm oil prices will plunge to 2,500 ringgit ($547.29) by the end of December, weighed down by improving production, demand destruction and a slowdown in major economies, leading analyst Dorab Mistry said on Friday. Read full story

* Dalian’s most-active soyoil contract DBYv1 fell 1.44%, while its palm oil contract DCPv1 dropped 3.71%. Soyoil prices on the Chicago Board of Trade BOc1 were trading 0.14% higher.

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

* Exports of Malaysian palm oil products for Sept. 1-25 rose 20.9% from the same period in August, cargo surveyor Intertek Testing Services said on Sunday, while independent inspection company AmSpec Agri said exports increased 18.6%. Read full storyRead full story

* Palm oil may retest a support at 3,427 ringgit per tonne, as it has pierced below the Sept. 8 low of 3,481 ringgit, Reuters technical analyst Wang Tao. In the fourth quarter, palm oil may drop towards 2,723 ringgit per tonne. TECH/C

MARKET NEWS

* Oil steadied in early Asian trade as indications that producer alliance OPEC+ sought to avoid a collapse in prices, along with a slight softening in the dollar, tempered an earlier sell-off. O/R

* U.S. stocks and oil prices declined in choppy trading on Monday, while the dollar and Treasury yields pushed higher, as Wall Street digested a raft of mixed macroeconomic news.MKTS/GLOB.

Reuters

Posted on:2022-09-27T09:44:58+05:00

35247