June 30, 2022: Malaysian palm oil futures firmed on Thursday ahead of June export data, but concerns over falling shipments and rising production set the contract for its biggest monthly decline since the financial crisis of 2008.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 12 ringgits, or 0.24%, to 4,915 ringgits ($1,116.54) a tonne at the start of trading.
For the month, the contract plunged 22%, its biggest drop since October 2008.
Cargo inspectors are expected to release estimates for June exports later today. Traders expect shipments to remain weak amid efforts by Indonesia’s top producer to boost exports.
Industry groups have so far forecast double-digit production growth this month, although temporary factory closures in parts of Malaysia due to lower palm prices could hurt the production.
Dalian’s most active soybean oil contract, DBYcv1, fell 0.2%, while its palm oil contract DCPcv1 fell 0.02%. Chicago Board of Trade BOcv1 soybean oil prices rose 0.2%.
Palm oil is affected by fluctuations in related oil prices as they compete for a share of the global vegetable oil market.
Palm oil could test support at 4,742 ringgits a tonne as it may have rebounded from the recent low of 4,493 ringgits, Reuters technical analyst Wang Tao said. TECHNICAL/C
Asian stocks ended a difficult quarter on Thursday amid gloomy mood amid fears that central banks’ cure for inflation could end up making the global economy sick, even if it proves to be a boost for the dollar. safe haven and government bonds.
Published on: 2022-06-30T09:39:55+05:00