March 29, 2022: Malaysian palm oil futures fell Tuesday, weighed down by expectations of higher production amid slowing exports and weakening crude prices.
The reference palm oil contract FCPOc3 for delivery in June on the Bursa Malaysia Derivatives Exchange fell 60 ringgit, or 1%, to 5,918 ringgit ($1,402.87) per tonne in early 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 fell 5% month-on-month over the same period, freight experts said last week.
The crisis between Ukraine and Russia has sent commodity prices soaring, but a recent correction in the CPO market is likely to attract some price-sensitive buyers, Refinitiv Agriculture Research said in a note late Monday.
The rise in palm oil prices is also limited by the EU commission’s move to ensure food security at the expense of the biofuel mandate, Refinitiv said.
Dalian’s most active soybean oil contract DBYcv1 fell 1.2%, while palm oil contract DCPcv1 fell 1%. Soybean oil prices on the Chicago Board of Trade BOcv1 were up 0.08%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Japanese equities led to gains in Asian equities as the Bank of Japan defended its ultra-easy stance, while oil slipped on fears of lower demand from China as Shanghai adopts a “zero-COVID” strategy by trading despite a relatively modest number of cases. Close. MKTS/GLOB
US crude oil futures fell, adding to the previous day’s losses as Ukraine and Russia moved into peace talks and fears a drop in fuel demand in China after the Shanghai financial center closed to a to curb the wave of COVID-19 cases.
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