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VEGOILS-Palm oil eases; traders focus on Indonesia's export curbs

JAKARTA, Jan 25 (Reuters) - Malaysian palm oil futures dropped on Tuesday, tracking weak performances in rival oils, after the vegetable oil scaled to a record high in the previous session amid talks of export restrictions from top producer Indonesia.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange was down 0.38% at 5,240 ringgit ($1,251.79) a tonne. In the previous session, the contract hit an all-time high of 5,380 ringgit, but shed gains to close 1.18% lower.

FUNDAMENTALS
Indonesia has asked palm oil exporters to get shipment approvals from the trade ministry. The government is also discussing a plan to limit exports of the oil, an industry group said.

Indonesia's plan to limit palm oil exports is likely to make leading importer India shift to substitute soy and sunflower oils, potentially capping the market's rally, industry officials and analysts said.

Oil prices climbed on Tuesday, regaining some of the ground lost in the previous day's sharp losses, on concerns over possible supply disruptions amid rising geopolitical tensions in both Eastern Europe and the Middle East.

Dalian's most-active soyoil contract DBYcv1 and palm oil contract DCPcv1 fell 2.26% and 1.63%, respectively, while soyoil prices on the Chicago Board of Trade BOcv1 were up 0.56%.

Palm oil FCPOc3 may test a support at 5,174 ringgit per tonne, a break below could open the way towards 5,106 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Chicago wheat futures extended gains for a second straight session, hitting a one-month high, on concerns that Russia-Ukraine tensions could disrupt grain shipments from the region.

Asian shares and U.S. futures tumbled after a tumultuous Wall Street session, with investors nervous about the situation in Ukraine and eyeing the U.S. Federal Reserve amid worries about a move to tighter monetary policy globally.
By: via Malaysian Palm Oil Council Russia