VEGOILS-Palm oil firms on lower end-stocks estimates ahead of MPOB data release

  • Reuters
  • Commodities News
VEGOILS-Palm oil firms on lower end-stocks estimates ahead of MPOB data release

KUALA LUMPUR, Nov 10 (Reuters) - Malaysian palm oil futures edged up on Tuesday, on hopes of lower stockpile ahead of the release of key industry data by the Malaysian Palm Oil Board (MPOB), but weakness in rival oils and crude limited gains.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 0.12% to 3,231 ringgit ($785.75) a tonne as of 0308 GMT.

Palm rose 1.5% in the previous session and is trading at a $7 premium above competing soyoil on the Chicago Board of Trade.

FUNDAMENTALS

* MPOB is due to release its October supply and demand data later in the day. A Reuters' survey pegged stokpiles to fall 9.8% on-month and production was likely down 5.6%. Palm oil imports into the European Union and Britain in the 2020/21 season stood at 2.13 million tonnes, up 1% from the previous season, official EU data showed on Monday. Dalian's most-active soyoil contract DBYc3 slipped 0.6%, while its palm oil contract DCPc3 fell 0.3%. Soyoil prices on the Chicago Board of Trade BOc1 were down 0.3%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Oil prices dropped on concerns over fuel demand in the near term in coronavirus-hit Europe and the U.S., after an overnight surge on progress towards a COVID-19 vaccine. O/R

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

MARKET NEWS

* Asian share markets mostly shot higher driven by regional airline, tourism and travel stocks as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery. MKTS/GLOB

DATA/EVENTS

0130 China PPI, CPI YY

Oct

0700 UK

Claimant Count Unem Chng Oct

0700 UK

ILO Unemployment Rate

Sep

1000 Germany Zew Economic Sentiment

Nov

1000 Germany Zew Current Conditions

Nov

($1 = 4.1100 ringgit) ($1 = 4.1120 ringgit)

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