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Update prices, add analyst comments
JAKARTA, March 21 (Reuters) – Malaysian palm oil futures rose on Tuesday after falling for three straight sessions, but weaker rival vegetable oils and a firmer currency limited gains.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange climbed 41 ringgit, or 1.08%, to 3,826 ringgit ($854.97) a tonne by midday.
“Palm rose more on pull-back after a fall for three consecutive days and the markets are oversold,” a Kuala Lumpur-based trader said.
However, a firmer ringgit and weaker vegetable oils in the Dalian Commodity Exchange and Chicago soyoil capped gains, the trader added.
The Malaysian ringgit, the contract currency of trade, rose 0.22% in early trade. A stronger ringgit makes palm oil more expensive for foreign currency holders.
Market participants were also waiting for the Federal Reserve’s decision on its benchmark overnight interest rate on Wednesday, as investors remain on edge in the midst of global banking strains, the trader said.
Exports of Malaysian palm oil products for March 1-20 rose between 19.8% and 29.8% from a month earlier, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysiashowed.
Indonesia’s palm oil production for 2023/24 is seen at 46 million metric tonnes (MMT), an increase of 3% from the previous year, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service report said.
Dalian’s most active soyoil contract DBYcv1 slid 0.17%, while its palm oil contract DCPcv1 dropped 1.27%. Soyoil prices on the Chicago Board of Trade BOc2 were down 0.31% after Monday’s 0.8% gain.
* Palm oil FCPOc3 may bounce further to 3,931 ringgit per tonne, as suggested by its wave pattern and a falling channel.TECH/C
($1 = 4.4750 ringgit)
(Reporting by Bernadette Christina Munthe; Editing by Subhranshu Sahu , Nivedita Bhattacharjee)
((Bernadette.christina@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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