Vegoils: Palm tumbles over 6% on weak outlook for exports, China lockdown fears

MMTec

13/07/2022 07:13

* Malaysia's July exports seen weak on higher Indonesia
supply 
    * Lockdown fears hit Dalian palm, soyoil prices 
    * Chicago soyoil prices fall 1.3%

 (Updates with midday prices, adds quotes)
    By Mei Mei Chu
    KUALA LUMPUR, July 13 (Reuters) - Malaysian palm oil futures
plunged more than 6% on Wednesday due to weak July exports and
as fears of renewed COVID-19 curbs in China sparked a selloff in
rival Dalian oils. 
    The benchmark palm oil contract  FCPOc3  for September
delivery on the Bursa Malaysia Derivatives Exchange slid 276
ringgit, or 6.71%, to 3,840 ringgit ($866.62) a tonne by the
midday break.
    Malaysia's palm oil stocks at end-June rose to their highest
in seven months as its exports were throttled by rival
Indonesia's policies to boost its own shipments, industry
regulator data showed on Tuesday.  urn:newsml:reuters.com:*:nL1N2YT07R
    Exports from the world's second-largest producer during July
1-10 fell between 2.7% and 21% from a month-ago period, cargo
surveyors said.  urn:newsml:reuters.com:*:nAZN0B56XE urn:newsml:reuters.com:*:nAZN0BDOLM urn:newsml:reuters.com:*:nAPN0OBZMS
    "Indonesia ratcheting up production and a deceleration in
demand will be a headwind for prices both in July and August,"
said Paramalingam Supramaniam, director at Selangor-based
brokerage Pelindung Bestari, adding there were deep concerns
over maintaining the pace of demand. 
    "Also there are widespread rumours about the possibility of
Indonesia removing its export levy of $200 per tonne,"
Paramalingam said.
    Indonesia, the world's biggest producer, said last week it
would consider lowering its levy to spur exports and clear
rising inventories.  urn:newsml:reuters.com:*:nL1N2YO057
    In key buyer China, fears of renewed lockdowns to stem a
fresh COVID-19 outbreak dragged on Dalian edible oils prices.
 urn:newsml:reuters.com:*:nL1N2YU07R
    Dalian's most-active soyoil contract  DBYcv1  fell 6.2%,
while its palm oil contract  DCPcv1  plunged 7.1%. Soyoil prices
on the Chicago Board of Trade  BOcv1  were down 1.3% after a
U.S. government forecast of lower demand and higher production.
 urn:newsml:reuters.com:*:nL1N2YT1KY
    Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
    Palm oil may stabilize around a support at 3,900 ringgit per
tonne, and test a resistance at 4,090 ringgit thereafter,
Reuters technical analyst Wang Tao said.  TECH/C 
    
    ($1 = 4.4310 ringgit)

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 (Reporting by Mei Mei Chu; Editing by Amy Caren Daniel)
 ((Meifong.chu@thomsonreuters.com))
 
((For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type  OILS/MY01 .
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in  OILS/ASIA2  and press enter, or double click between the brackets. 
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11.
Vegetable oils                        OILS/ASIA1 
Malaysian palm oil exports            SGSPALM1   
CBOT soyoil futures                   0#BO:      
CBOT soybean futures                  0#S:       
Indian solvent                        SOLVENT01  
Dalian Commodity Exchange             DC/MENU   
Dalian soyoil futures                 0#DBY:   
Dalian refined palm oil futures       0#DCP:   
Zhengzhou rapeseed oil                0#COI:   
European edible oil prices/trades     OILS/E    ))