Congo Central Bank Likely to Cut Lending Rate as Inflation Eases — Market Talk

Malaysian palm oil futures plunged near 3.0% to below MYR 4,700 per tonne, slipping for the second session to a 3-week low amid mounting concerns over sluggish exports.

Cargo surveyor AmSpec Agri noted Malaysia's palm oil shipments from Nov. 1–20 shrank 1.38% from the same period in Oct.

Meanwhile, Malaysia's move to raise its Dec. export tax on crude palm oil to 10% and increase the indicative price to MYR 4,471.39 could further weigh on foreign demand.

Adding to the bearish mood, US soybean futures slumped, on expectations of a plentiful South American soy harvest this year and uncertainty over demand for soy-based biodiesel fuel.

Further, worries escalated surrounding demand from major buyers like India and China.

As winter nears, consumers in these countries often shift to alternative edible oils better suited for cold weather.

Partially cushioning the fall were remarks from Malaysian Palm Oil Board that prices would remain supported by tight supply and higher domestic consumption.

Gold extended its recent gains to above $2,650 per ounce on Thursday, rising for the fourth consecutive session, as investors sought safety in the metal as geopolitical uncertainty intensified with escalating Russia-Ukraine tensions.

On Wednesday, Ukraine launched Western-supplied long-range weapons for the second time, a day after President Putin approved an updated nuclear doctrine expanding the conditions for using nuclear weapons.

At the same time, the US vetoed a UN resolution for a Gaza ceasefire, reigniting concerns over the ongoing Middle East conflict.

On the monetary policy front, markets continued to assess the Federal Reserve’s interest rate outlook, closely watching Fedspeak for new trading signals.

A slight majority of the market still expects a 25bps rate cut in December, which would reduce the opportunity cost of holding non-interest-bearing gold.