KLC FCPO futures gained on Monday as investors weighed higher Malaysian exports in July and a new Indonesian rule mandating merchants to repatriate a percentage of their export revenues.

– According to reports from cargo surveyors AmSpec and ITS, Malaysian palm oil product exports showed a growth of 16.7% and 19.3%, respectively, during the period of July 1-15 compared to the corresponding week in June.

– The market entered a state of uncertainty, following Russia’s announcement on Monday to withdraw from the agreement permitting grain exports from Ukraine through the Black Sea. Russia criticized the U.N.-brokered agreement, claiming it favored Ukraine and expressed a possibility of rejoining the deal if its demands were fulfilled.

– Traders remained wary as a result of Indonesia’s new law requiring exporters to repatriate a portion of their foreign currency earnings.

World Oil and Grains
– CBOT Soybean futures rose on Monday due to uncertainty surrounding the production potential of the U.S. crop.

– In the weekly assessment, USDA is expected to rate 53% of the nation’s soybean crop as good to excellent, a 2-point improvement from the previous week. However, these scores would be the lowest for this time of year since 2012, when the country experienced a severe drought.

– Analysts view that the size of the crop remains uncertain as it heavily depends on weather conditions in August.

Market Outlook

– Palm oil continued its sideways move since the beginning of July, gaining RM49 to settle at MYR3,930. The market also exhibited a balanced strength between bullish and bearish forces, resulting in neutral momentum.

– The price is likely to continue its sideways movement today due to the lack of significant catalysts to drive the market. There is a possibility of the price retesting the consolidation range to determine whether it will continue the bullish trend continuation or undergo a price correction.

Opening range: 3930 to 3940
Projected range of the day: 3750 to 4050

Support 3750 Next 3700
Resistance 3950 Next 4000