KUALA LUMPUR, Oct 22 (Reuters) – Malaysian palm oil futures fell on Friday, and were set for a 1.3% weekly decline, as talks that top buyers China and India may strengthen regulation on speculative activities rattled the market.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange slid 72 ringgit, or 1.45%, to 4,896 ringgit ($1,178.06) a tonne during early trade, down for a second consecutive session.
FUNDAMENTALS
* The market is concerned that regulators in India and China would increase scrutiny on speculative trading to tame record high prices, following news that Beijing signalled it might intervene to cool surging prices of coal futures.
* Dalian’s most-active soyoil contract DBYcv1 fell 4.6%, while its palm oil contract DCPcv1 dropped 5.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 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 open low on Friday to extend its losses into a range of 4,822-4,909 ringgit, following a completion of a five-wave cycle from 4,125 ringgit per tonne, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Global stock indexes mostly climbed and the S&P 500 posted a record closing high on Thursday, helped by gains in consumer discretionary and technology shares, while U.S. Treasury yields jumped. MKTS/GLOB
* Oil prices resumed their climb on continued tightness in U.S. supply, but were headed for a flat finish on the week as coal and gas prices eased. O/R
DATA/EVENTS
0600 UK Retail Sales MM, YY Sept
0600 UK Retail Sales Ex-Fuel MM Sept
0715 France Markit Mfg, Serv, Comp Flash PMIs Oct
0730 Germany Markit Mfg, Serv, Comp Flash PMIs Oct
0800 EU Markit Mfg, Serv, Comp Flash PMIs Oct
9830 UK Flash Comp, Serv, Mfg PMIs Oct
1345 US Markit Mfg, Serv, Comp Flash PMIs Oct
($1 = 4.1570 ringgit)
($1 = 4.1560 ringgit)
cpohttps://tmsnrt.rs/3pvLjbz
(Reporting by Mei Mei Chu; Editing by Rashmi Aich)
((Meifong.chu@thomsonreuters.com))
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