By Rajendra Jadhav
MUMBAI, November 16 (Reuters) – Malaysian palm oil futures were flat on Wednesday morning, near their lowest level in more than two weeks, as rising stocks and falling rival soybean oil prices offset rising prices. exports and production concerns.
The reference palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange edged up 2 ringgits, or 0.05%, to 4,068 ringgits ($897.02) per tonne at the lunch break.
Malaysian palm oil inventories at the end of October rose for a fifth month to a three-year high as production improved, data from the national palm oil board showed on Friday.
Exports from Malaysia, the world’s second largest producer, increased between 10.7% and 12.7% in the period from November 1 to 15, compared to the same weeks in October, data from cargo inspectors showed.
The market is struggling to adjust to volatility in the Malaysian ringgit and uncertainty over vegetable oil supply due to shipments of La Nina and sunflower oil from the Black Sea region, said a Mumbai-based trader with a global trading house.
“It looks like the palm is consolidating its gains. At the moment it would remain limited and then could rise as stocks in Indonesia are down,” he said.
The ringgit MYR=the exchange currency of the palm tree, has relaxed against the dollar, making the product cheaper for holders of other currencies.
Disruptions in palm oil supplies Deu to Tropical storms in major producers Indonesia and Malaysia are expected to continue into the first quarter of 2023, keeping prices high, the Malaysian Palm Oil Board (MPOB) said on Monday.
Chicago Board of Trade Soybean Oil Price BOcv1 were down 0.75%.
Palm oil is affected by fluctuations in related oil prices as they compete for a share of the global vegetable oil market.
($1 = 4.5350 ringgit)
(Reporting by Rajendra Jadhav; Editing by Savio D’Souza and Rashmi Aich)
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