Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm set for second monthly rise; China's COVID rules in focus

KUALA LUMPUR, Nov 30 (Reuters) - Malaysian palm oil futures firmed on Wednesday and extended gains for a second consecutive month, as hopes of China easing its strict COVID-19 policy lifted equities and commodities markets.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange gained 5 ringgit, or 0.12%, to 4,224 ringgit ($941.81) a tonne during early trade.

For the month, palm has risen 4.3%.

FUNDAMENTALS
China will speed up COVID-19 vaccinations for elderly people, health officials said on Tuesday, aiming to overcome a key stumbling block in efforts to ease the unpopular "zero-COVID" curbs.

Oil rose on expectations that China would loosen its COVID curbs, but gains were limited by concerns that OPEC+ would keep its output unchanged at its upcoming meeting.

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

Dalian's most active soyoil contract DBYcv1 rose 1.6%, while its palm oil contract DCPcv1 gained 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.12%.

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 test a resistance at 4,329 ringgit a tonne, a break above which could lead to a gain into the 4,400-4,497 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
The S&P 500 .SPX closed lower on Tuesday as investors awaited guidance on the Federal Reserve's path of interest rate hikes, while U.S. oil futures gained on hopes of China easing its COVID-19 restrictions that have fuelled fears about the global economy.
By: via Malaysian Palm Oil Council Russia