Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil gains, set for third weekly rise on output worries

KUALA LUMPUR, Jan 7 (Reuters) - Malaysian palm oil futures rose on Friday, setting it on course for a third straight weekly gain, supported by concerns over adverse weather hurting output of palm and rival soyoil.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 43 ringgit, or 0.86%, to 5,028 ringgit ($1,195.72) a tonne in early trade.

It had gained 0.48% overnight and is set for a 7% weekly jump.

FUNDAMENTALS
The Southern Peninsula Palm Oil Millers' Association estimated production during Jan. 1-5 fell 45.8% from the same period in December, traders said on Thursday.

Market is eyeing industy data to assess the impact on production after flooding in recent weeks disrupted harvesting activities in several states.

Brazilian soybean prices have climbed past last year's highs, as hopes for another record harvest are dashed by hot and dry weather in southern states, agribusiness consultancy AgRural said.

Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%. Dalian's most-active soyoil contract DBYcv1 rose 0.6%, while its palm oil contract DCPcv1 also gained 0.6%.

Palm oil may rise to 5,094 ringgit per tonne, as it has cleared a resistance at 5,001 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares snapped two sessions of losses, climbing as investors waited to see whether U.S. jobs data due later in the day would reinforce the need for faster U.S. interest rate hikes.
By: via Malaysian Palm Oil Council Russia