Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil hits 3-week high as Indonesian supply remains stuck

KUALA LUMPUR, May 27 (Reuters) - Malaysian palm oil futures hit a three-week high on Friday and were set for a weekly jump, with the market tracking a rally in Dalian palm olein amid tight supplies, as exports from Indonesia have not resumed.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 124 ringgit, or 1.90%, to 6,657 ringgit ($1,519.52) a tonne during early trade.

For the week, palm is set to surge 8.9%, snapping a three week loss.

FUNDAMENTALS
Exports of Malaysian palm oil products for May 1-25 rose 23.9% to 1,112,175 tonnes from 897,683 tonnes shipped during Apr. 1-25, cargo surveyor Societe Generale de Surveillance said on Thursday.

Leading edible oil analyst Dorab Ministry on Thursday urged top producer Indonesia to immediately resume exports of palm oil, warning that an extended halt in shipments pending details of a domestic sales rule could spell economic "doom" for farmers.

Dalian's most-active soyoil contract DBYcv1 rise 1.8%, while its palm oil contract DCPcv1 jumped 3.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.05%.

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 rise into a range of 6,713-6,731 ringgit per tonne, driven by a wave (c), Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares extended overnight global gains thanks to strong results from regional tech firms and U.S. retailers, while investors also took comfort from Federal Reserve minutes showing a pause to its rate hikes is on the cards later this year.
By: via Malaysian Palm Oil Council Russia