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KUALA LUMPUR, Feb 2 (Reuters) – Malaysian palm oil futures fell for a second straight session on Thursday, weighed down by weakness in rival Dalian edible oils, low exports and a firmer ringgit.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange slid 38 ringgit, or 1%, to 3,777 ringgit ($892.70) a tonne in early trade.
The contract fell 8.6% in January, marking its second consecutive monthly drop.
FUNDAMENTALS
* Exports of Malaysian palm oil products for January fell 26.4% to 1,113,292 tonnes from 1,512,468 tonnes shipped during December, cargo surveyor Societe Generale de Surveillance said on Tuesday.
* Dalian’s most-active soyoil contract DBYcv1 fell 2.7%, while its palm oil contract DCPcv1 eased 2.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* The ringgit MYR=, palm’s currency of trade, rose 0.75% against the dollar, making the commodity more expensive for holders of foreign currencies.
* Palm oil is expected to test a support at 3,796 ringgit per tonne, a break below which could be followed by a drop into a range of 3,683-3,721 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks jumped while the dollar eased after Federal Reserve Chair Jerome Powell said a “disinflationary” process was underway, boosting risk appetite and hope that the U.S. central bank will soon end its monetary tightening streak. MKTS/GLOB
DATA/EVENTS (GMT)
1200 UK BOE Bank Rate Jan
1315 EU ECB Refinancing Rate Feb
1315 EU ECB Deposit Rate Feb
1339 US Initial Jobless Clm Weekly
1500 US Factory Orders MM Dec
0130 – BOJ Deputy Governor Masazumi Wakatabe to deliver
speech and hold a news conference in Shizuoka
1345 – European Central Bank President Christine Lagarde
speaks to reporters in Frankfurt following the Governing
Council’s monetary policy meeting
($1 = 4.2310 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)
((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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