Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil slips for third session ahead of MPOB data

KUALA LUMPUR, April 7 (Reuters) - Malaysian palm oil futures eased on Friday, extending a two-day decline ahead of key data, although the contract is set for a weekly rise buoyed by expectations of tightening supply.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange eased 2 ringgit, or 0.05%, to 3,821 ringgit ($868.41) a tonne during early trade.

For the week, palm has risen 1.5% so far, advancing for a second consecutive week.

FUNDAMENTALS
Investors are awaiting Malaysian Palm Oil Board (MPOB) data due on Monday to determine further price direction.

A Reuters' survey ahead of MPOB data forecast Malaysia's palm oil inventories tumbling to an eight-month low of 1.77 million tonnes at end-March, as exports soared ahead of the month of Ramadan.

Dalian's most-active soyoil contract DBYcv1 eased 0.7%, while its palm oil contract DCPcv1 fell 0.7%. The Chicago Board of Trade BOcv1 was closed for a public holiday.

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

Oil prices were little changed on Thursday but posted a third weekly gain as markets weighed further production cuts targeted by OPEC+ and falling U.S. oil inventories against fears about the global economic outlook.

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

MARKET NEWS
U.S. stocks reversed an earlier sell-off to close higher on Thursday, and Treasury yields steadied, as investors digested weak labor market data ahead of a U.S. jobs report, seeking signs the Federal Reserve could pause on rate hikes.
By: via Malaysian Palm Oil Council Russia