Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm rallies to six-week high on Indonesia's export ban

KUALA LUMPUR, April 25 (Reuters) - Malaysian palm oil futures jumped nearly 6% on Monday to their highest in six weeks after top producer Indonesia said it plans to ban exports of the most widely used vegetable oil, stoking concerns over further tightening of world supplies.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange rose 320 ringgit, or 5.82%, to 6,725 ringgit ($1,548.11) a tonne in early trade, hitting its highest since March 11.

FUNDAMENTALS
Indonesian President Joko Widodo on Friday announced a decision to ban shipments of cooking oil and its raw material starting April 28, in a shock move that could further inflame surging global food inflation.

Indonesia's move will hurt other countries but is necessary to try to bring down the soaring domestic price of cooking oil driven up by Russia's war in Ukraine, Indonesia's finance minister told Reuters on Friday.

Soyoil prices on the Chicago Board of Trade BOcv1 surged to record highs following a 2.2% climb in the previous session. Dalian's most-active soyoil contract DBYcv1 rose 1.5%, while its palm oil contract DCPcv1 gained 5%.

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 6,392 ringgit a tonne, a break above which could lead to a gain to 6,548 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian stocks fell the most in two weeks on Monday as concern about rapid U.S. rate rises and slowing growth rattled investors, while the euro found support after Emmanuel Macron won a second term as French president.
By: via Malaysian Palm Oil Council Russia