Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil ease on weak crude prices; output forecasts in focus
 
KUALA LUMPUR, April 7 (Reuters) - Malaysian palm oil futures eased on Thursday, dragged by an overnight plunge in crude prices, with traders awaiting industry estimates on March production to assess end-month stocks.
 
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 26 ringgit, or 0.44%, to 5,886 ringgit ($1,395.61) a tonne during early trade, down for a second consecutive session.
 
FUNDAMENTALS
A Reuters poll on Monday forecast March production to rise 16.4% from the month before to 1.32 million tonnes, but it would be offset by stronger exports. End-month stocks were seen 0.5% higher at 1.53 million tonnes.
 
A larger rise in production would further build up stock levels, pressuring prices.
 
Oil prices clawed back some losses after tumbling more than 5% to a three-week low in the previous session after consuming nations announced a huge release of oil from emergency reserves to offset supply lost from Russia.
 
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
 
Dalian's most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 gained 0.9%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.4%.
 
Palm oil may fall into a range of 5,606 ringgit to 5,744 ringgit per tonne, as it could have completed a bounce from the April 1 low of 5,477 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares retreated in line with a global selloff, as markets were spooked by more aggressive noises from U.S. policymakers about the need for tighter monetary policy, which also kept the dollar near a two-year peak.
By: via Malaysian Palm Oil Council Russia