KUALA LUMPUR, Nov 17 (Reuters) – Malaysian palm oil futures rose on Wednesday, underpinned by estimates of weaker production and higher exports during the first half of November.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange gained 57 ringgit, or 1.19%, to 4,845 ringgit ($1,161.31) a tonne during early trade.
FUNDAMENTALS
* Concerns over weaker output is weighing on the market as plantations enter the lower production season amid rainy weather.
* The Southern Peninsula Palm Oil Millers’ Association (SPPOMA) estimated production during Nov. 1-15 fell 6.3% from the month before, traders said on Tuesday.
* Exports of Malaysian palm oil products during the same period rose between 10% and 29% month-on-month, according to data by cargo surveyors on Monday.
* Dalian’s most-active soyoil contract DBYcv1 rose 0.4%, while its palm oil contract DCPcv1 gained 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.5%.
* 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 fall further to 4,683 ringgit per tonne, as the downtrend from the Oct. 21 high of 5,220 ringgit has resumed, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* The dollar reached a four-and-a-half-year high against the yen after better-than-expected U.S. retail data, which also boosted Wall Street equities, although Asian shares failed to follow suit. MKTS/GLOB
* Oil prices dropped after U.S. gasoline stocks fell more than expected last week, which could heighten pressure on the Biden administration to release oil from emergency reserves to cap soaring gasoline prices. O/R
DATA/EVENTS
0700 UK CPI YY
1000 EU HICP Final MM, YY
1330 US Housing Starts Number
($1 = 4.1720 ringgit)
cpohttps://tmsnrt.rs/3FqNOAj
(Reporting by Mei Mei Chu; editing by Uttaresh.V)
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