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JAKARTA, Dec 14 (Reuters) – Malaysian palm oil futures on Wednesday extended gains to a second session, as lower-than-expected stocks and strength in related oils on the Dalian exchange helped lift prices.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange gained 1.49% to 3,944 ringgit ($896.36) per tonne in early trade, extending a 4% gain a day earlier.
FUNDAMENTALS
* Malaysia’s palm oil stocks at the end of November fell for the first time in six months as production slumped amid a slight pick-up in exports, data from the nation’s palm oil board showed on Tuesday.
* Exports of Malaysian palm oil products for Dec. 1-10 rose 15.7% to 473,086 tonnes compared to shipments in Nov. 1-10, cargo surveyor Societe Generale de Surveillance said on Tuesday.
* Dalian’s most active soyoil contract DBYv1 were traded 1.15% higher, while its palm oil contract DCPv1 climbed 1.49%. Soyoil prices on the Chicago Board of Trade BOc2 fell 0.78%.
* Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
* Meanwhile, the Malaysian ringgit MYR= gained 0.59% against the U.S. dollar. A stronger ringgit, in which the benchmark is traded, could make palm oil less attractive for foreign currency holders.
* Palm oil may test a resistance at 4,029 ringgit a tonne, a break above which could lead to a gain to 4,132 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Wall Street stocks gained on Tuesday, while Treasury yields fell and the dollar weakened, as new U.S. government data showed the smallest annual increase in inflation in nearly a year. MKTS/GLOB
* Oil prices fell in early trade after industry data showed a big build in U.S. crude inventories, rather than the decline forecast by analysts, reinforcing fears about weakening demand even as supply tightens. O/R
DATA/EVENTS (GMT)
0700 UK Core CPI YY Nov
0700 UK CPI YY Nov
1330 US Import Prices YY Nov
1900 US Federal Open Market Committee announces
its decision on interest rates followed by statement
($1 = 4.4000 ringgit)
(Reporting by Fransiska Nangoy; editing by Uttaresh.V)
((Fransiska.Nangoy@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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