Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm rebounds on boost from stronger rival oils

JAKARTA, Dec 5 (Reuters) - Malaysian palm oil futures rebounded on Monday after posting a weekly decline of more than 4%, as a recovery in rival oils in the United States and China buoyed prices.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange rose 3.21% to 4,079 ringgit ($934.26) a tonne in early trade, rebounding from a two-week low on Friday.

FUNDAMENTALS
Soyoil prices on the Chicago Board of Trade BOc2 gained 1.44%, after losing 10.80% over the four previous sessions. Dalian's most active soyoil contract DBYv1 rose 0.82%, while its palm oil contract DCPv1 gained 0.36%.

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

The ringgit MYR= strengthened against the U.S. dollar for a fourth day, hitting its best level in seven months on Monday. A stronger ringgit makes palm oil less attractive for holders of foreign currencies.

Palm oil may drop further into a range of 3,837-3,891 ringgit a tonne, probably after a moderate bounce to 4,029 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares extended their rally as investors hoped steps to unwind pandemic restrictions in China would eventually brighten the outlook for global growth and commodity demand, nudging the dollar down against the yuan.
By: via Malaysian Palm Oil Council Russia