Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm rises for third day on Indonesia's biodiesel mandate

KUALA LUMPUR, July 12 (Reuters) - Malaysian palm oil futures rose for a third straight session on Tuesday, supported by top producer Indonesia's plan to raise its biodiesel mandate.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 70 ringgit, or 1.68%, to 4,227 ringgit ($952.89) a tonne during early trade. The market reopened after a long weekend on Tuesday.

FUNDAMENTALS
Indonesia plans to increase the content of palm oil-based fuel in its biodiesel to 35%, known as B35, from 30%, starting July 20, senior energy ministry official Dadan Kusdiana said last week.

Exports of Malaysian palm oil products for July 1-10 fell 20.5% to 330,310 tonnes from 415,348 tonnes shipped during June 1-10, cargo surveyor Intertek Testing Services said on Sunday.

Investors are awaiting the Malaysian Palm Oil Board's June supply and demand data due later in the day. A Reuters poll has pegged inventories could hit a seven-month high due to a plunge in exports.

Dalian's most-active soyoil contract DBYcv1 rose 1.2%, while its palm oil contract DCPcv1 gained 0.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.5%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil looks neutral in a range of 4,090-4,267 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares fell, weighed down by the prospect of further monetary policy tightening by central banks, China's COVID-19 outbreak and Europe's energy shortage, which also left the euro a whisker from parity with the safe haven dollar.
By: via Malaysian Palm Oil Council Russia