KUALA LUMPUR, Jan 14 (Reuters) – Malaysian palm oil futures fell on Friday tracking weaker rival oils, while traders also booked profits after the contract rose to an all-time closing high on concerns of persisting labour shortage.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange lost 55 ringgit, or 1.07%, to 5,106 ringgit ($1,220.95) a tonne in early trade. It also lost 0.7% overnight, but looked set for a weekly gain.
FUNDAMENTALS
* The market is on a profit-taking mode after Thursday’s rally, and tracking Dalian and soyoil weakness, a Kuala Lumpur-based trader said.
* Dalian’s most-active soyoil contract DBYcv1 dropped almost 1%, while its palm oil contract DCPcv1 slipped 0.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.1%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may test a support at 5,094 ringgit per tonne, and a break below could open the way to 5,001 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian shares took a beating after a fresh salvo of hawkish remarks from Federal Reserve officials solidified expectations that U.S. interest rates could rise as soon as March, leaving markets braced for tighter monetary conditions. MKTS/GLOB
* Oil prices eased for a second session on growing concerns that Washington may soon act to cool prices, while movement controls in China to rein in a COVID-19 outbreak weighed on fuel demand. O/R
DATA/EVENTS
0300 China Exports, Imports YY Dec
0300 China Trade Balance Dec
0700 UK GDP Est 3M/3M Nov
0700 UK GDP Estimate MM, YY Nov
0700 UK Manufacturing Output Nov
0745 France CPI (EU Norm) Final MM, YY Dec
1100 EU Reserve Assets Total Dec
1330 US Retail Sales MM Dec
1415 US Industrial Production MM Dec
1500 US U Mich Sentiment Prelim Jan
($1 = 4.1820 ringgit)
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(Reporting by Liz Lee; Editing by Shounak Dasgupta)
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