Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm hits six-week high on shrinking stocks forecast

KUALA LUMPUR, Jan 5 (Reuters) - Malaysian palm oil futures rose for fourth straight session on Wednesday, hitting a six-week high, as surveys estimate a drop in December inventories and production.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 44 ringgit, or 0.9%, to 4,958 ringgit ($1,183.29) a tonne during early trade, its highest since Nov. 25.
It had gained 0.46% during overnight trade.

FUNDAMENTALS
Malaysia's palm oil inventories at the end of December likely shrunk 4.9% from the previous month to 1.73 million tonnes, their lowest in five months, a Reuters survey ahead of Malaysian Palm Oil Board data showed.

Production is pegged to fall 8.6% to 1.49 million tonnes, while exports are seen declining 4.9% to 1.4 million tonnes.

Dalian's most-active soyoil contract DBYcv1 rose 1.5%, while its palm oil contract DCPcv1 gained 1.9%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.12%.

Palm oil faces a resistance at 4,948 ringgit per tonne, a break above could lead to a gain into the 4,994-5,069 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Wall Street's optimistic start to the New Year continued on Tuesday as prices for some stocks, oil and the dollar advanced, but investors dialled back risk-taking elsewhere as data showed U.S. manufacturing slowed and COVID-19 spread.
By: via Malaysian Palm Oil Council Russia