2023-12-20 04:03:04
Malaysian palm oil futures rose in early trade on Wednesday on concerns over falling production and dwindling inventories at major global suppliers.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 32 ringgit, or 0.85 percent, to 3,787 ringgit ($815.46) in early trade.
FUNDAMENTALS
* Malaysia’s palm oil stocks at the end of November fell for the first time in seven months as production fell more than exports, according to data from the industry regulator last week.
* Indonesia, the world’s largest palm oil producer, exported 3.00 million metric tons of palm oil products in October, down 31% from the same month of the year latest, according to data from the Indonesian Palm Oil Association (GAPKI) released on Tuesday.
* European Union soybean imports for the 2023/24 season, which began in July, reached 5.17 million metric tons as of Dec. 17, almost unchanged from 5.15 million metric tons in the the previous year, according to data published by the European Commission on Tuesday.
* Malaysia’s exports of palm oil products in the first half of December fell 13.6% month-on-month to 591,490 metric tonnes, cargo watchdog Intertek Testing Services said on Friday.
* Soybean oil futures on the Chicago Board of Trade were down 0.41%.
* Indonesia plans to set the benchmark crude palm oil price at $767.51 per metric ton for the period Dec. 16-31, down from $795.14 in the first half of the month .
* India’s palm oil imports in November hit a near three-month high, up 23% from October, as refiners favored tropical oil over soya and oil sunflower due to deep discounts, a leading trade body said.
*Palm oil is still targeting a range of 3,813-3,835 ringgit per metric tonne as it broke a resistance zone of 3,775-3,781 ringgit.
MARKET NEWS
* Oil prices rose on Wednesday after rising more than 1% in the previous session on concerns about disruptions to global trade and geopolitical tensions in the Middle East following Houthi attacks on ships in the Red Sea .
* Asian stocks followed Wall Street’s rise as US rate cut fever continued as the end of the year approached. ($1 = 4.6440 ringgit) (Reporting by Mayank Bhardwaj; Editing by Eileen Soreng)
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