Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil tracks crude, Dalian rival oils higher

KUALA LUMPUR, April 21 (Reuters) - Malaysian palm oil futures rose on Thursday as strength in rival edible oils and crude futures set a positive tone for the market, although gains were capped by lackluster demand for exports this month.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange gained 89 ringgit, or 1.41%, to 6,397 ringgit ($1,494.63) a tonne during early trade.

FUNDAMENTALS
Investors are expecting top producer Indonesia to maintain its crude palm oil export tax and levy for May, but lower its reference price.

Exports of Malaysian palm oil products during April 1-20 fell between 14% and 18%, compared with the same week in the prior month, cargo surveyors said on Wednesday.

Oil prices traded higher but in a narrow range, after being rocked earlier in the week by supply losses from Libya and a worrying outlook for demand as the International Monetary Fund cut its global growth forecasts.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract DBYcv1 rose 0.8%, while its palm oil contract DCPcv1 gained 0.7%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.3%.

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

Palm oil may retest a resistance at 6,548 ringgit a tonne, a break above could lead to a gain into the 6,664-6,686 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Mainland China and Hong Kong stocks fell, hurt by worries about the Chinese economy, but an overnight tumble in longer dated U.S. treasury yields lent support to other benchmark indexes.
By: via Malaysian Palm Oil Council Russia