Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm climbs over 2% on crude oil strength, tight stocks outlook
 
KUALA LUMPUR, April 5 (Reuters) - Malaysian palm oil futures rose more than 2% on Tuesday, lifted by strength in crude oil futures, and as surveys indicated tight end-March inventories in the world's second largest producer.
 
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange rose 147 ringgit, or 2.58%, to 5,839 ringgit ($1,384.96) a tonne in early trade, extending gains to a second session.
 
FUNDAMENTALS
Oil futures rose as the potential for more sanctions following alleged war crimes by Russian troops in Ukraine added to concerns about supply disruptions.
 
Stronger crude futures make palm a more attractive option for biodiesel feedstock.
 
Malaysia's production in March was seen expanding 16.4% month-on-month to a three-month peak of 1.32 million tonnes, a Reuters survey showed on Monday.
 
However, rising exports and lower imports likely offset production, keeping end-March inventories tight at 1.53 million tonnes - a 0.5% uptick from the previous month, according to the survey.
 
Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.4% after a 1.6% overnight gain. The Dalian exchange was closed for a public holiday.
 
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 gain more into a range of 5,855-5,966 ringgit per tonne, as suggested by a projection analysis, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian stocks ticked up to their highest in more than a month supported by broad gains on Wall Street, while the euro was stuck near a one-week low against the dollar amid talk of more sanctions against Moscow.
By: via Malaysian Palm Oil Council Russia