KUALA LUMPUR, March 29 – Malaysian palm oil futures fell on Tuesday, weighed down by expectations of higher production amid slowing exports and weakening crude prices.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 60 ringgits, or 1%, to 5,918 ringgits ($1,402.87) a tonne at the start of trading.
It fell 1.76% overnight.
* A millers association estimated on Monday that production from March 1-25 was up 15.3% from the previous month, traders said.
* Exports over the same period fell 5% month-on-month, cargo inspectors said last week.
* The Ukraine-Russia crisis has pushed commodity prices higher, but a recent correction in the crude palm oil market will likely attract some price-sensitive buyers, Refinitiv Agriculture Research said in a note late Monday.
* Palm oil price gains are also limited by the European Commission’s decision to preserve food security at the expense of the biofuels mandate, Refinitiv said.
* The most active soybean oil contract in Dalian DBYcv1 fell 1.2%, while its palm oil contract DCPcv1 decreased by 1%. Chicago Board of Trade Soybean Oil Price BOcv1 increased by 0.08%.
* Palm oil is impacted by related oil price movements as they compete for share of the global vegetable oil market.
* Japanese equities led Asian equities’ gains as the Bank of Japan defended its ultra-easy stance, while oil slid on fears of weaker demand from China as Shanghai implemented a ” zero-COVID” by locking down despite a relatively modest workload. MKTS/GLOB
* U.S. crude futures fell, extending yesterday’s losses as Ukraine and Russia headed for peace talks and on fears of lower fuel demand in China after the shutdown of the Shanghai financial center to curb a rise in COVID-19 cases. WHERE
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($1 = 4.2185 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)
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