VEGOILS-Palm oil slips on profit booking after three-day rally

KUALA LUMPUR, September 14 (Reuters)Malaysian palm oil futures fell on Wednesday as investors posted profits after a three-day rally amid broader market weakness on expectations of continued output growth, although that a weakening of the ringgit cushioned the losses.

The reference palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange slid 65 ringgits, or 1.67%, to 3,833 ringgits ($847.45) at the start of trading.

FUNDAMENTALS

* The ringgit MYR=the palm tree’s currency fell 0.4% to its lowest level since 1998, making the commodity cheaper for foreign currency holders.

* The value of Colombia’s palm oil exports could increase significantly to $800 million this year, thanks to high international prices and stable production, the association of palm producers said on Tuesday.

* The most active soybean oil contract in Dalian DBYcv1 fell 0.04%, while its palm oil contract DCPcv1 gained 0.9%. Chicago Board of Trade Soybean Oil Price BOcv1 increased by 0.3%.

* Malaysian plantings are in their peak production season and were up 9.7% month-on-month in August, according to data from the palm oil board. Analysts expect production to remain strong in September before declining during the fourth quarter.

* Palm oil is impacted by related oil price movements as they compete for share of the global vegetable oil market.

* Palm oil is facing strong resistance at 3,916 ringgits per tonne, it could swing below that level or retrace towards 3,686 ringgits, Reuters technical analyst Wang Tao said. TECHNICAL/C

MARKET NEWS

* Asian stocks fell, the dollar held firm and the U.S. yield curve inverted deeply on Wednesday as a searing U.S. inflation report dashed hopes of a spike in inflation and fueled bets that interest rates may need to be raised higher and for longer. MKTS/GLOB

* Oil prices edged higher at the start of trade as OPEC stuck to forecasts of robust growth in global fuel demand, offsetting fears of another interest rate hike of the US Federal Reserve next week after the unexpected rise in consumer prices in August. WHERE

DATA/EVENTS (GMT)

0600 United Kingdom IPC YY August

1230 US PPI Machinery Manufacturing August

($1 = 4.5230 ringgit)

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(Reporting by Mei Mei Chu; Editing by Rashmi Aich)

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