Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm extends gains after overnight rise to record high

KUALA LUMPUR, Jan 21 (Reuters) - Malaysian palm oil futures rose for the third straight session on Friday, after hitting a record high of 5,231 ringgit ($1,249.94) during overnight trade.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 14 ringgit, or 0.27%, to 5,201 ringgit a tonne by 0240 GMT.

It had gained 0.69% overnight, gaining strength from a firm external market and news of Indonesia's plan to limit palm oil exports, which could cut global supply of the edible oil.

The contract is set for a fifth consecutive weekly climb, having risen 1.6% so far this week.

FUNDAMENTALS
Indonesia's plan to limit palm oil exports that has driven prices to record highs 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.

Exports of Malaysian palm oil products for Jan. 1-20 fell 43.1% to 626,029 tonnes from Dec. 1-20, cargo surveyor Societe Generale de Surveillance said.

Dalian's most-active soyoil contract DBYcv1 rose 1.2%, while its palm oil contract DCPcv1 gained 0.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.1%, after jumping 3.5% overnight.

Palm oil looks shaky around a previous high of 5,220 ringgit per tonne. It may test a support at 5,174 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares and U.S. futures fell on Friday, after Wall Street took a knock overnight, hurt by lingering concerns over the Federal Reserve's tightening and weaker-than-expected economic and earnings data.

Oil prices plunged on Friday, after rising to seven-year highs this week, as an increase in U.S. crude and fuel stockpiles prompted investors to take profits from the rally.
By: via Malaysian Palm Oil Council Russia