Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm gains for second day on rival oil strength

JAKARTA, Dec 22 (Reuters) - Malaysian palm oil futures extended gains to a second session on Wednesday, tracking gains in rival oils and crude oil prices.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange rose 1.16% to 4,435 ringgit ($1,054.70) in early trade.

On Tuesday, it gained 2.21% in its best session in two weeks, buoyed by concerns of harvest being disrupted by floods in Malaysia and an import tax cut by key buyer India. The contract gained 0.48% in overnight trade.

FUNDAMENTALS
Dalian's soyoil contract DBYv1 for May delivery rose 1.78% while its palm oil contract DCPcv1 gained 2.22%. Soybean oil prices on the Chicago Board of Trade BOc2 for May delivery were up 0.39%.

Oil prices rose again as the dollar slipped, with risk appetite returning as some governments resist imposing lockdowns to curb the spread of the Omicron COVID-19 variant and as China said it would be able to sustain economic growth.

Stronger crude oil futures typically make palm a more attractive option for biodiesel feedstock.Palm oil may bounce more into a range of 4,480-4,555 ringgit per tonne, following its stabilisation around a support at 4,296 ringgit, said Reuters technical analyst Wang Tao.

MARKET NEWS
Asian share markets were gaining ground as the risk appetite of global investors rises heading into year-end, despite the surging number of Omicron variant cases around the world.
By: via Malaysian Palm Oil Council Russia