Malaysian palm oil futures inched higher on Tuesday, rising for a second session, as stronger rival edible oils and crude oil prices lifted the market.
The benchmark palm oil contract (FCPOc3) for September delivery on the Bursa Malaysia Derivatives Exchange gained 26 ringgit, or 0.57%, to 4,576 ringgit ($1,122.39) a metric ton in early trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract (DBYcv1) rose 1.29%, while its palm oil contract CME:CPO1! added 1.46%. Soyoil prices on the Chicago Board of Trade (BOcv1) were up 0.3%.
* Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
* Oil prices edged higher, but gains were limited as traders looked beyond easing geopolitical tensions in the Middle East and turned their attention to supply increases and demand prospects. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* The ringgit FX_IDC:USDMYR, palm's currency of trade, strengthened 0.12% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
* Indonesian state planter PT Agrinas Palma Nusantara plans to open biodiesel and bioethanol plants to support the government's renewable energy agenda, while adding soybean and cassava to its portfolio, its chief executive said.
* Palm oil may extend gains to 4,633 ringgit per metric ton, as a three-wave cycle from 4,710 ringgit has completed, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks drifted lower on Tuesday, even after South Korea's Samsung Electronics forecast an eye-popping 19-fold jump in second-quarter profit, while the Japanese yen remained pinned near 40-year lows amid intervention speculation. MKTS/GLOB
DATA/EVENTS
0600 Germany Industrial Output MM May
0600 Germany Industrial Production YY May
0600 UK Halifax House Prices MM, YY Jun
0645 France Reserve Assets Total Jun
1230 US International Trade $ May
($1 = 4.0770 ringgit)