NEW DELHI: Malaysian palm oil futures opened down on Monday, extending losses from the previous session, as the market awaits the Malaysian Palm Oil Board’s widely-watched data on output and inventories.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 40 ringgit, or 1.03%, to 3,858 ringgit ($887.92) a metric ton in the early trade.
Fundamentals
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Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly palm oil data on Tuesday, Sept. 10.
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Malaysia’s palm oil inventories are expected to have climbed to a six-month high at end-August due to lacklustre export demand, a Reuters survey showed.
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Malaysia’s August palm oil exports are seen at 1,376,412 tons, according to Amspec Agri.
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Indonesia, the biggest palm oil exporter, plans to lower export duties to improve competitiveness and raise farmers’ income.
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Exports of Malaysian palm oil products fell 9.9% to 1,445,442 tons in August from 1,604,578 tons in July, cargo surveyor Intertek Testing Services said.
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Oil futures jumped by a dollar in early trading on Monday as a potential hurricane system approached the US Gulf Coast, and as markets recovered from a selloff following weaker-than-expected US jobs data on Friday.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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Palm oil may retest support at 3,886 ringgit per ton, a break below which could trigger a fall to 3,856 ringgit, Reuters technical analyst Wang Tao said.
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