Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil rises as supply concerns linger

JAKARTA, Jan 26 (Reuters) - Malaysian palm oil futures rose on Wednesday, tracking rival oils higher, supported by lingering concerns over lower production.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 0.47% to 5,307 ringgit ($1,267.19) per tonne in early trading, regaining a 0.42% drop in the overnight trade.

Palm were holding up firm as supply concern persisted, despite the poor export data for so far in January, a trader in Kuala Lumpur said.

FUNDAMENTALS
Malaysia's Jan 1-25 palm oil exports fell between 32.9% and 36.7% compared to the same period in December, cargo surveyors said on Tuesday.

Top producer Indonesia ran an early testing for gasoline made from palm oil as the country aim to expand use of the vegetable oil in energy sector.

Dalian's most-active soyoil contract DBYcv1 rose 0.34%, while its palm oil contract DCPcv1 gained 1.21%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.13%.

Oil prices eased on Wednesday as investors booked profits ahead of an update from the U.S. Federal Reserve, although fears over tighter supply amid tensions in Ukraine and the Middle East capped losses.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Palm oil FCPOc3 may revisit its Tuesday low of 5,202 ringgit per tonne, as a correction triggered by the resistance at 5,366 ringgit looks incomplete, Reuters technical analyst Wang Tao said.

MARKET NEWS
Chicago wheat futures lost ground for the first time in three sessions on Wednesday, although tensions between key grain exporters Russia and Ukraine provided a floor under the market.

Asian share markets got off to a cautious start on Wednesday, after another volatile Wall Street session, as investors braced for the outcome of the Fed's meeting late in the day and any hints about faster tightening of monetary policy.
By: via Malaysian Palm Oil Council Russia