Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil set for longest winning streak in 18 months

KUALA LUMPUR, Oct 7 (Reuters) - Malaysian palm oil futures rose for a seventh straight session on Friday, clocking its longest winning streak since March 2021, buoyed by stronger crude prices ahead of a long weekend and key data releases.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange gained 75 ringgit, or 2.03%, to 3,775 ringgit ($812.35) a tonne during early trade.

For the week, the contract has surged 10.3% so far, its biggest jump in nearly two months.

FUNDAMENTALS
Plantation firms in Malaysia, the world's second-biggest producer of palm oil, are stepping up mechanisation to stem losses running into billions of dollars as fruit goes unharvested during their worst labour shortage yet.

The Malaysian bourse will be closed on Monday for a holiday.

The Malaysian Palm Oil Board is scheduled to announce supply and demand data for September when the market reopens on Tuesday, with a Reuters' poll forecasting inventories swelling to a near three-year high.

Malaysia is set to announce its 2023 budget later in the day.

Soyoil prices on the Chicago Board of Trade BOcv1 slipped 0.1% after a four day rally. The Dalian exchange is closed for the week for holidays.

Oil prices rose, continuing an upward trend after OPEC+, this week, agreed to tighten global supply with a deal to cut production targets by 2 million barrels per day (bpd).

Stronger crude prices makes palm a more attractive option for biodiesel feedstock.

Palm oil may test a resistance at 3,824 ringgit per tonne, a break above which could lead to a gain into the 3,858-3,919 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian stocks declined, extending a global equity slide to a third day, as investors fretted over recession risks amid signs of further aggressive central bank policy tightening.
By: via Malaysian Palm Oil Council Russia