Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm sees correction but heads for weekly gain amid supply concern

JAKARTA, March 31 (Reuters) - Malaysian palm oil futures eased in early trade on Friday after four days of gains on profit taking, but are set for a weekly rise amid output concerns.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange fell 0.98% to 3,751 ringgit ($851.34) early in the session, erasing some of the 7.67% gains over the past four days.

The contract posted a 6.84% rise so far this week, but is on track to post a monthly loss.

FUNDAMENTALS
Cargo surveyors are scheduled to release March exports data later on Friday.

Malaysia's palm oil output is expected to decline after a miller's association estimated a 22.9% decline in output from March 1-25, analysts said.

Dalian's most-active soyoil contract DBYv1 gained 1.41%, while its palm oil contract DCPv1 rose 0.50%. Soyoil prices on the Chicago Board of Trade BOc2 dropped 0.26%.

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 extend gains to 3,853 ringgit per tonne, to complete a bounce from 3,500 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares were headed for a second quarterly gain on Friday while bonds were enjoying the best month since 2008, but the market braced for a stormy session after an upside surprise in German CPI raised the stakes for U.S. inflation data.
By: via Malaysian Palm Oil Council Russia