Malaysian palm oil futures opened more than 1% higher on Monday, after falling for two straight sessions, supported by stronger rival edible oils and a softer ringgit.
The benchmark palm oil contract (FCPOc3) for September delivery on the Bursa Malaysia Derivatives Exchange gained 56 ringgit, or 1.25%, to 4536 ringgit ($1,114.22) a metric ton in early trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract (DBYcv1) rose 0.96%, while its palm oil contract CME:CPO1! added 1.06%. Soyoil prices on the Chicago Board of Trade (BOcv1) were up 1.67%.
* Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
* Oil prices inched lower on Monday after OPEC+ agreed to further increase its output targets from August while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies. O/R
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* The ringgit FX_IDC:USDMYR, palm's currency of trade, weakened 0.1% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.
* World food prices edged lower in June as declines in sugar, cereals and dairy outweighed increases in vegetable oils and meat, the United Nations' Food and Agriculture Organization said.
* Malaysia's palm oil inventories likely rose in June to their highest level on record for the month, as stronger production outpaced demand growth, a Reuters survey showed.
* Palm oil may extend the loss toward the support at 4,440 ringgit per metric ton before stabilizing around this level and then rising, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian share markets were mostly firmer on Monday, as Wall Street futures started the week with gains on hopes for an upbeat earnings season, while easing oil prices promised relief from inflationary pressures. MKTS/GLOB
DATA/EVENTS
0600 Germany Industrial Orders MM May
0600 Germany Manufacturing O/P Cur Price SA May
0600 Germany Consumer Goods SA May
0830 UK S&P GLOBAL PMI MSC Composite Output Jun
1345 US S&P Global Comp, Svcs PMI Final Jun
1400 US ISM N-Mfg PMI Jun
($1 = 4.0710 ringgit)