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VEGOILS-Palm oil drops 1% on profit taking

Published 27-10-2020, 08:37 am
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FCPOc1
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SINGAPORE, Oct 27 (Reuters) - Malaysian palm oil futures fell on Tuesday as traders booked profits after prices hit a one-month high in the previous session, although losses were limited by more expensive rival oils elsewhere.

The benchmark palm oil contract FCPOc3 , for January delivery, on the Bursa Malaysia Derivatives Exchange fell 1% to 3,037 ringgit ($729.70) in early trade.

"Prices are down due to some profit-taking as market was overbought," a Kuala Lumpur based trader told Reuters.

The contract had jumped 4.3% to 3,066 ringgit in the previous session, its highest since it rose to 3,104 ringgit on Sept. 21.

Limiting losses however were costlier rival oils on the Dalian Commodity Exchange and the Chicago Board of Trade.

Dalian's most-active soyoil DBYc3 rose 1.3% and its palm oil DCPc4 contract gained 1.4%.

Meanwhile, soyoil prices on the Chicago Board of Trade BOc1 were flat, but reached a four-year high overnight on firm Chinese demand. oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may test a resistance at 3,096 ringgit per tonne, a break above which could lead to a gain to 3,144 ringgit, Reuters technicals analyst, Wang Tao said. TECH/C

FUNDAMENTALS

* Chicago wheat futures edged higher on Tuesday after a U.S. report pegged the condition of the country's crop below forecasts, although the gains were capped on expectations of rain in key exporting regions in the Northern Hemisphere. Oil prices regained a semblance of stability on Tuesday after suffering sharp losses over the previous session and last week, as a resurgence of coronavirus cases globally hit prospects for crude demand while increasing supply also hurt sentiment. NEWS

* Asian markets look set to continue a downward path on Tuesday after soaring global coronavirus cases and shrinking hopes for a U.S. stimulus deal took a toll on Wall Street and drove up the U.S. dollar. MKTS/GLOB

DATA/EVENTS AHEAD (GMT)

1230 US Durable Goods

Sept

1400 US Consumer Confidence Oct

($1 = 4.1620 ringgit)

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