KUALA LUMPUR, Nov 9 (Reuters) – Malaysian palm oil futures fell on Tuesday, tracking weakness in rival oils, while expectations of a larger rise in October stockpile also weighed on sentiment.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange slid 92 ringgit, or 1.88%, to 4,803 ringgit ($1,155.12) a tonne during early trade, down for a second session in the last three.
FUNDAMENTALS
* A higher-than-expected forecast of 1.7% rise in October production by the Malaysian Palm Oil Association on Monday have stoked concerns that inventories may rise faster than previously estimated.
* The Malaysian Palm Oil Board is scheduled to release official data on Wednesday.
* Refinitiv Agriculture Research said in a note on Monday the contract may fall towards support levels of 4,765-4,785 ringgit a tonne this week, with resistance at 5,220 ringgit a tonne, weighed down by erosions in broader external markets.
* However, the market’s downside could be limited by adverse weather patterns amid the monsoon season across Malaysia and Indonesia, potentially curbing palm oil production, Refinitiv said.
* Dalian’s most-active soyoil contract DBYcv1 fell 1.2%, while its palm oil contract DCPcv1 slipped 1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.14%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
* Asian shares followed Wall Street higher in early trade on Tuesday as the passage of a U.S. infrastructure bill boosted sentiment while oil prices gained on the outlook for energy demand in an expansive global economy. MKTS/GLOB
DATA/EVENTS
1000 Germany ZEW Economic Sentiment Nov
1000 Germany ZEW Current conditions Nov
($1 = 4.1580 ringgit)
(Reporting by Mei Mei Chu; Editing by Rashmi Aich)
((Meifong.chu@thomsonreuters.com))
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