Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil rises for third day on expectations of soft December output

JAKARTA, Dec 23 (Reuters) - Malaysian palm oil futures rose for the third straight session on Thursday amid expectations of a softer December output due to torrential rains that began last week and caused floods in eight states in Malaysia.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange rose 1.30% to 4,506 ringgit ($1,071.58) in early trade.

Palm gained 3.73% over the past two days and rose 1.57% in overnight trade.

FUNDAMENTALS
Dalian's soyoil contract DBYv1 for May delivery rose 1.59%, while its palm oil contract DCPv1 gained 1.60%. Soybean oil prices on the Chicago Board of Trade BOc2 for May delivery were down 0.16%.

Oil prices rose on overnight after a larger-than-expected drawdown in U.S. inventories, shaking off worries about the likely hit to economic activity from the spread of the Omicron coronavirus variant.

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

Palm oil may test a resistance at 4,555 ringgit per tonne, a break above which could lead to a gain into 4,625-4,676 ringgit range.

MARKET NEWS
A global share rally continued in early Asian trading on Thursday and the safe haven dollar was on the back foot as markets took cheer from positive signs about the impact of the Omicron variant and U.S. economic data.
By: via Malaysian Palm Oil Council Russia