VEGOILS-Palm oil extends losses on slowing Chinese consumption

SINGAPORE, Nov 9 (Reuters) – Malaysian palm oil futures lost ground on Wednesday, with restrictions related to the COVID-19 pandemic reducing demand in China, one of the world’s top importers of the tropical product.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange lost 65 ringgit, or 1.5%, to 4,296 ringgit ($909.40) a tonne in early trade.

FUNDAMENTALS

* The global outlook for palm oil remains uncertain, with strict pandemic policies in major importer China weighing on demand, while high energy prices and a slowdown in output provide support, leading industry analysts said at a conference on Friday.

* Nearly three years into the pandemic, China is sticking with a strict COVID-19 containment policy that has caused mounting economic damage and widespread frustration, while keeping its borders shut for most international travel.

* In related edible oils, Dalian’s most-active soyoil contract lost 1.1%, while its palm oil contract added 0.3%.

* Palm oil may break a support at 4,368 ringgit a tonne, and fall into 4,264-4,311 ringgit range, according to Wang Tao, a Reuters analyst for commodities technicals.

MARKET NEWS

* U.S. stocks gyrated to a higher close on Tuesday, and Treasury yields edged lower as Americans went to the polls and market participants bided their time waiting to see whether Capitol Hill is in for a power shift. [MKTS/GLOB]

DATA/EVENTS (GMT) 0130 China PPI, CPI YY Oct Governing Council of the ECB holds non-monetary policy meeting in Frankfurt ($1 = 4.7240 ringgit) (Reporting by Naveen Thukral; Editing by Rashmi Aich)

Source : Nasdaq

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