Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm rises for third day on supply outlook; Indonesia's policies in focus

KUALA LUMPUR, May 24 (Reuters) - Malaysian palm oil futures rose on Tuesday for a third consecutive day, supported by indications of weaker production and higher exports, with traders monitoring announcements surrounding Indonesia's domestic sales rule.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 82 ringgit, or 1.31%, to 6,343 ringgit ($1,444.22) a tonne during early trade.

FUNDAMENTALS
Indonesia has no plans to reduce the percentage of palm oil in biodiesel below its current level of 30% in order to ensure the country's energy supply, its minister for economic affairs Airlangga Hartarto told Reuters on Monday.

The world's biggest palm oil producer allowed the resumption of palm oil exports from Monday after a three-week ban, but industry players said shipments were unlikely to restart until details emerge on how much of the edible oil must be held back for domestic use.

In Malaysia, May end-stocks are expected to be tight after exports during May 1-20 rose as much as 32% on the month, while production is estimated to plunge 15%, according to data from cargo surveyors and industry groups.

Dalian's most-active soyoil contract DBYcv1 rose 0.4%, while its palm oil contract DCPcv1 was up 1.7%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.4%.

Palm oil looks neutral in a range of 6,099-6,354 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares slipped as relief at a rally on Wall Street was quickly soured by a slide in U.S. stock futures, while the euro held near one-month highs as odds narrowed on a July rate rise by the ECB.
By: via Malaysian Palm Oil Council Russia