KUALA LUMPUR, Dec 16 (Reuters) – Malaysian palm oil futures rose on Thursday, clawing back from previous session’s steep decline, tracking strength in rival soyoil and crude prices.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit, or 0.77%, to 4,299 ringgit ($1,016.67) during early trade.
It had plunged 4.5% in the previous session after cargo surveyors reported a larger-than-expected drop in exports during the first half of December.
FUNDAMENTALS
* Exports of Malaysian palm oil products for Dec. 1-15 fell 13.4% to 789,549 tonnes from the same period in November, cargo surveyor Societe Generale de Surveillance said.
* Dalian’s most-active soyoil contract DBYcv1 fell 0.1% while its palm oil contract DCPcv1 slipped 0.5%. 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.
* Oil prices rose as the United States implied consumer petroleum demand surged to a record high in the world’s top oil consumer even as the Omicron variant of coronavirus threatens to dent oil consumption globally. O/R
* Stronger crude oil futures typically make palm a more attractive option for biodiesel feedstock.
MARKET NEWS
* Asian stocks followed Wall Street higher on Thursday after the U.S. Federal Reserve said it would end bond-buying stimulus in March to set up three interest rate increases next year to tackle heated inflation. MKTS/GLOB
DATA/EVENTS
0815 France Markit Mfg Flash PMI Dec
0830 Germany Markit Mfg Flash PMI Dec
0900 EU Markit Mfg Flash PMI Dec
0930 UK Flash Manufacturing PMI Dec
1200 UK BOE Bank Rate Dec
1245 EU ECB Refinancing Rate Dec
1245 EU ECB Deposit Rate Dec
1330 US Initial Jobless Clm Weekly
1330 US Housing Starts Number Nov
1415 US Industrial Production MM Nov
1445 US Markit Mfg PMI Flash Dec
1330 Press conference following the Governing Council meeting of the ECB in Frankfurt
($1 = 4.2285 ringgit)
(Reporting by Mei Mei Chu;)
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