Reference no: EM133089926
KUALA LUMPUR: Malaysian palm oil futures fell 0.42% on Wednesday, as concerns over rising new Covid-19 coronavirus infections weighed on investors' mood. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange dropped to 2,346 ringgit a tonne by 0256 GMT.
Palm oil futures ended higher on Tuesday, helped by expectations of importers stocking up on the commodity in case of further coronavirus-led lockdowns and a recovery in prices of rival oils.
Oil prices retreated on Wednesday, weighed down by an increase in U.S. crude inventories and worries about a potential second wave of the Covid-19 pandemic. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. Dalian's most active soya oil contract lost 0.14%, while its palm oil contract rose 1.13%. Soya oil prices on the Chicago Board of Trade shed 0.5%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Palm oil may end its bounce around a resistance at 2,388 ringgit per tonne, and then resume its drop, Reuters technical analyst Wang Tao said. Asian share markets took a breather on Wednesday as a resurgence of coronavirus cases challenged market confidence in a rapid economic recovery, even as the rebound in U.S. retail sales in May broke all records. Reuters
Source:https://www.thestar.com.my/business/business-news/2020/06/17/cpo-dips-on-worries-of-new-covid-19-cases
The above news talk about the impact of the COVID-19 pandemic on futures contracts.
Discuss the impact of the pandemic on THREE (3) financial derivatives other than futures contracts.