[ad_1]
By Mei Mei Chu
KUALA LUMPUR, Nov 14 (Reuters) – Malaysian palm oil futures fell on Monday, weighed down by a stronger ringgit and weakness in competing vegetable oils, even as supply concerns grew over flooding in the world’s second-largest producer.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange slid 115 ringgit, or 2.68%, to 4,172 ringgit ($910.32) a tonne in early trade.
The ringgit MYR=, palm’s currency of trade, strengthened 0.91% against the dollar, rising for a second straight session. A stronger ringgit makes the commodity more expensive for buyers holding other currencies.
Disruptions to crude palm oil supplies in top producers Malaysia and Indonesia because of tropical storms are expected to continue into the first quarter of 2023, keeping prices upbeat in the near-term, Malaysian industry officials said.
Palm oil prices are likely to trade between 4,000 rinngit and 4,400 ringgit a tonne until the end of December due to flooding and a weaker ringgit, the state Malaysian Palm Oil Council (MPOC) said.
Prices will ease to 3,900-4,300 ringgit by March 2023, and slip further to 3,800-4,200 ringgit in the second quarter, said MPOC Chief Executive Wan Aishah Wan Hamid.
Nine Indonesian companies on Friday signed contracts to sell 2.5 million tonnes of palm oil products valued at $2.6 billion to 13 Chinese buyers, the Indonesian trade ministry said in a statement.
Dalian’s most-active soyoil contract DBYcv1 slipped 1.2%, while its palm oil contract DCPcv1 lost 1.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
($1 = 4.5830 ringgit)
(Reporting by Mei Mei Chu; Editing by Dhanya Ann Thoppil and 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.
[ad_2]
Source link
