Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil firms on higher crude prices

KUALA LUMPUR, Sept 5 (Reuters) - Malaysian palm oil futures ticked up on Monday tracking a stronger crude, but the contract remained near a one-month low hit in the previous session.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange gained 3 ringgit, or 0.08%, to 3,918 ringgit ($873.29) a tonne during early trade.

FUNDAMENTALS
Palm slumped 6% last week after key buyer China imposed fresh COVID-19 lockdown measures in the cities of Chengdu and Shenzen to conduct mass testing, raising concerns over demand for the edible oil.

Oil prices jumped more than $1 a barrel, extending gains as investors eyed possible moves by OPEC+ producers to tweak production and support prices at a meeting later in the day.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract DBYcv1 rose 1.4%, while its palm oil contract DCPcv1 gained 0.4%. The Chicago Board of Trade were 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 bounce to 4,000 ringgit, as it has found a support at 3,857 ringgit per tonne, Reuters technical analyst Wang Tao said.

MARKET NEWS
European stock futures slid on Monday, while the euro took a fresh spill after Russia shut a major gas pipeline to Europe, leading some governments there to announce emergency measures to ease the pain of soaring energy prices.
By: via Malaysian Palm Oil Council Russia