Malaysian palm oil futures traded in a tight range on Thursday, as stronger soyoil partially countered softer Dalian palm olein and weaker crude oil prices.
The benchmark palm oil contract (FCPOc3) for September delivery on the Bursa Malaysia Derivatives Exchange held its ground at 4,546 ringgit ($1,113.67) a metric ton in early trade.
FUNDAMENTALS
* Dalian's most-active soyoil contract (DBYcv1) rose 0.59%, while its palm oil contract CME:CPO1! shed 0.11%. Soyoil prices on the Chicago Board of Trade (BOcv1) were up 0.15%.
* Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
* Oil prices dropped in early trade after Qatar said Iran and the U.S. had made "positive progress" in indirect talks that concluded on Wednesday, focused on the Strait of Hormuz, which handled one-fifth of global oil supply before the war. 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, strengthened 0.24% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
* Indonesia's new 50% biodiesel blending mandate took effect on Wednesday, requiring a fuel blend of half palm-based diesel and conventional diesel known as B50, even as stakeholders await a revised biodiesel allocation from the government.
* Indonesia exported 8.92 million metric tons of crude and refined palm oil in the January to May period, up 7.41% from the same period a year earlier, statistics bureau data showed.
* Palm oil may test resistance at 4,587 ringgit per metric ton, a break above which could lead to a gain into the 4,604-4,619 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian shares skidded on Thursday as investors rotated out of chipmakers following a stellar quarter, while currency and bond markets braced for U.S. jobs data that could gives hints about the risk of interest rate hikes. MKTS/GLOB
DATA/EVENTS
0900 EU Unemployment Rate May
1230 US Non-Farm Payrolls June
1230 US Unemployment Rate June
1230 US Average Earnings YY June
1230 US Initial Jobless Clm 27 June, w/e
1400 US Factory Orders MM May
($1 = 4.0820 ringgit)