Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm set for second straight weekly jump on global supply fears

KUALA LUMPUR, April 15 (Reuters) - Malaysian palm oil futures extended gains on Friday, setting them on course for a second consecutive weekly jump, as concerns over tightening global edible oil supplies lingered in the wake of Russia's invasion of Ukraine.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange gained 128 ringgit, or 2.04%, to 6,416 ringgit ($1,516.07) a tonne during early trade, its highest since March 14.

For the week, palm is up 8.4% so far.

FUNDAMENTALS
Italian confectionary giant Ferrero will stop sourcing palm oil from Sime Darby Plantation SIPL.KL after the U.S. customs service found the Malaysian planter used forced labour, in a reputational blow for the palm producer and for Malaysia.

Argentinian truckers agreed on Thursday night to call off a strike that paralysed soy and grains transport in the country since Monday, the transport ministry said.

Dalian's most-active soyoil contract DBYcv1 rose 0.6%, while its palm oil contract DCPcv1 gained 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Oil prices settled higher on Thursday as investors covered short positions ahead of the long weekend and on news that the European Union might phase in a ban on Russian oil imports.

Stronger crude makes palm a more attractive option for biodiesel feedstock.

MARKET NEWS
Wall Street stocks finished lower while bond yields and the dollar rose on Thursday as investors worried about the potential for aggressive U.S. policy tightening as other central banks around the world moved to reduce support.
By: via Malaysian Palm Oil Council Russia