Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm extends gains, tracks Chicago soyoil higher

KUALA LUMPUR, Nov 3 (Reuters) - Malaysian palm oil futures extended gains on Thursday for a fourth consecutive session, tracking overnight strength in Chicago soyoil amid optimism over China demand.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 66 ringgit, or 1.5%, to 4,464 ringgit ($941.18) a tonne during early trade, its highest since Aug. 12.

FUNDAMENTALS
The stronger prices of crude oil is making a higher mix of bio-content in fuel increasingly more feasible for Indonesia, which currently has a mandatory 30% mix of palm oil in biodiesel, a senior cabinet minister told an industry conference.

Russia said on Wednesday it would resume its participation in a deal freeing up grain exports from Ukraine, reversing a move that world leaders warned would increase hunger globally.

Dalian's most-active soyoil contract DBYcv1 rose 1.2%, while its palm oil contract DCPcv1 gained 1.7%. Soyoil prices on the Chicago Board of Trade BOcv1 eased after a 3% overnight rise.

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 break a resistance at 4,459 ringgit a tonne and rise towards 4,607 ringgit, Reuters technical analyst Wang Tao said.

Chicago Board of Trade soybean futures settled higher on Wednesday after a choppy session, lifted by strength in global vegetable oil markets and optimism about soybean export demand from China, traders said.

MARKET NEWS
Asian share markets slid on Thursday after the U.S. Federal Reserve laid the groundwork for a protracted tightening campaign that torpedoed market hopes for a pause, sank bonds and lifted the dollar.
By: via Malaysian Palm Oil Council Russia