KUALA LUMPUR, June 21 (Reuters) – Malaysian palm oil futures gained on Monday, lifted by stronger crude costs, as merchants waited for June partial export knowledge and manufacturing estimates for extra path.
The benchmark palm oil contract FCPOc3 for September supply on the Bursa Malaysia Derivatives Change gained 30 ringgit, or 0.88%, at 3,454 ringgit ($833.80) a tonne throughout early commerce.
Palm declined 6.5% final week, weighed by India’s transfer to placed on maintain a proposal to cut back import taxes on edible oils.
FUNDAMENTALS
* Malaysian palm oil exports throughout June 1-20 fell 0.8% to 945,745 tonnes from the identical interval in Might, Intertek Testing Companies stated on Sunday.
* Oil costs rose, underpinned by sturdy demand in the course of the summer time driving season and a pause in talks to revive the Iran nuclear deal that might point out a delay in resumption of provides from the OPEC producer. O/R
* Stronger crude oil futures make palm a extra enticing choice for biodiesel feedstock.
* Dalian’s most-active soyoil contract DBYcv1 gained 1.5% and its palm oil contract DCPcv1 rose 2%. Soyoil costs on the Chicago Board of Commerce BOcv1 had been down 0.5%.
* Palm oil is affected by worth actions in associated oils as they compete for a share within the international vegetable oils market.
* Palm oil could bounce extra to three,602 ringgit per tonne, because it has stabilized round a assist at 3,273 ringgit, Reuters technical analyst Wang Tao stated. TECH/C
MARKET NEWS
* Asian shares dropped on Monday as buyers mulled the implications of a shock hawkish shift final week by the U.S. Federal Reserve, whereas the Treasury yield curve flattened additional with 30-year yields dropping under 2%. MKTS/GLOB
DATA/EVENTS
No main knowledge/occasions anticipated on Monday
($1 = 4.1425 ringgit)
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(Reporting by Mei Mei Chu; Modifying by Amy Caren Daniel)
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