Palm slightly recovers after six-session slide on firmer Chicago soyoil

By Reuters News

KUALA LUMPUR, Oct 5 (Reuters) - Malaysian palm oil futures opened higher on Monday after falling for sixth straight sessions, supported by firmer Chicago soyoil, though weaker crude oil prices capped the gains.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 11 ringgit, or 0.24%, to 4,546 ringgit ($1,113.12) a metric ton in early trade.

FUNDAMENTALS

  • Oil prices slipped as rising crude exports from the Middle East and a release of oil stocks from Group of Seven nations are adding to supplies despite ongoing concerns about further damage to Gulf oil infrastructure amid the Iran war. O/R

  • Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

  • Soyoil prices on the Chicago Board of Trade were up 0.48%. The Dalian Commodity Exchange is closed for a public holiday and will reopen on October 8.

  • Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

  • The ringgit , palm's currency of trade, weakened 0.07% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

  • Danantara Sumberdaya Indonesia, a company established by the Indonesian government to supervise commodity exports, has started the test phase for a new monitoring platform aimed at boosting price transparency, the firm said.

  • Palm oil may test a support at 4,499 ringgit per metric ton; a break below could open the way towards 4,445 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

  • Stocks were off to a strong start on Monday while the dollar edged lower and bonds steadied, as investors trimmed bets on an aggressive policy tightening cycle by the Federal Reserve following cooler-than-expected US jobs data. MKTS/GLOB

DATA/EVENTS

0030 Japan S&P Global Comp Op Final SA Sep

0030 Japan S&P Global SVC PMI Final SA Sep

0750 France S&P Services, Composite PMI Sep

0755 Germany S&P Services PMI Sep

0755 Germany S&P Composite Final PMI Sep

0800 EU S&P Services, Composite Final PMI Sep

0830 UK S&P GLOBAL PMI: COMPOSITE - OUTPUT Sep

0830 UK Reserve Assets Total Sep

1345 US S&P Global Comp, Svcs PMI Final Sep

1400 US ISM N-Mfg PMI Sep

($1 = 4.0840 ringgit)


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