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JAKARTA, Nov 21 (Reuters) – Malaysian palm oil futures extended losses on Monday in line with losses in rival edible oils, as concerns of COVID-19 lockdown in China weigh on demand expectation, while firm exports data cushioned some of the declines.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange fell 0.44% to 3,833 ringgit ($837.27) per tonne in early trade. The contract logged 10% decline last week.
FUNDAMENTALS
* Rising COVID-19 infections in China continues to weigh on concerns over demand for edible oil, as Beijing’s most populous district urged residents to stay home on Monday, with at least one district in Guangzhou being locked down for five days.
* Exports of Malaysian palm oil products for Nov. 1-20 rose 9.6% to 997,216 tonnes, compared to shipments during Oct. 1-20, cargo surveyor Intertek Testing Services said on Sunday.
* Dalian’s most-active soyoil contract DBYv1 fell 1.52%, while its palm oil contract DCPv1 lost 0.63%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.38%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
* Asian share markets turned hesitant, as investors fretted about the economic fallout from fresh COVID-19 restrictions in China, while bonds and the dollar braced for more updates on U.S. monetary policy. MKTS/GLOB
* Oil prices hovered near two-month lows, as supply fears receded while concerns over China’s fuel demand and rising interest rates weighed on prices. O/R
DATA/EVENTS (GMT)
0115 China Loan Prime Rate 1Y, 5Y Nov
($1 = 4.5780 ringgit)
(Reporting by Fransiska Nangoy; Editing by Rashmi Aich)
((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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