Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm pares losses as crude, rival oils gain

KUALA LUMPUR, Dec 30 (Reuters) - Malaysian palm oil futures pared previous session's losses to gain on Thursday, buoyed by stronger crude and rival edible oils amid expectations for tighter supply.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange rose 21 ringgit, or 0.45%, to 4,716 ringgit ($1,131.34) a tonne during early trade.

It had gained 0.45% in overnight trade.

FUNDAMENTALS
Traders are awaiting industry estimates for December production, expecting lower output and drawdown on stocks.

Dalian's most-active soyoil contract DBYcv1 gained 0.2%, while its palm oil contract DCPcv1 rose 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.3%.

Oil prices extended several consecutive days of gains, buoyed by data showing U.S. fuel demand holding up well despite soaring Omicron coronavirus infections and making palm a more attractive option as biodiesel feedstock.

Palm oil may retest a support at 4,676 ringgit per tonne, a break below which could cause a fall into 4,591-4,625 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian share markets got off to a listless start on Thursday as the spread of Omicron clouded the last trading day of the year for many exchanges around the globe, while oil was close to finishing 2021 with gains of more than 50%.
By: via Malaysian Palm Oil Council Russia