Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm set for biggest weekly jump in a year on Indonesia's export ban

KUALA LUMPUR, April 29 (Reuters) - Malaysian palm oil futures rose on Friday and were set for their biggest weekly jump in a year, as an export ban by top producer Indonesia stoked concerns about supplies, sending global edible oil prices sharply higher.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange climbed 78 ringgit, or 1.13%, to 6,992 ringgit ($1,603.67) a tonne in early trade, rising for a third session in four.

For the week, the contract has gained 10.5% so far in what could be its biggest since May 7, 2021.

FUNDAMENTALS
Indonesia should be able to tackle its cooking oil shortage in the next few weeks and lift an export ban on palm oil and its refined products in May, an industry body said on Thursday, a day after a last-minute policy U-turn sparked more alarm for markets.

As a shortage of sunflower oil ripples through the global food industry, Unilever said on Thursday that it has altered some of its recipes so it can substitute rapeseed oil instead, a move that could help it save money as input costs soar.

Dalian's most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 gained 4.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.8% after a 3.2% jump overnight.

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 7,107 ringgit a tonne, a break above which could lead to a gain into the range of 7,239-7,419 ringgit, Reuters technical analyst Wang Tao said.

The Malaysian bourse will be closed until May 5 for Eid al-Fitr.

MARKET NEWS
Asian shares clung on to small gains on Friday thanks to a solid Wall Street session, but were still set for their worst month in two years, as China growth fears and looming U.S. rate hikes dragged on sentiment and sent the safe-haven dollar soaring.
By: via Malaysian Palm Oil Council Russia