Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil climbs 4.5% on worries over Black Sea supplies

KUALA LUMPUR, Nov 1 (Reuters) - Malaysian palm oil futures rallied for a second straight day on Tuesday, on concerns over global supplies after Russia suspended a Black Sea export agreement.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 183 ringgit, or 4.51%, to 4,237 ringgit ($895.77) a tonne during early trade.

FUNDAMENTALS
Indonesia has extended until the end of this year its policy of waiving a palm oil export levy, unless the palm oil reference price breaks $800 per tonnes, the economic ministry said on Monday.

Grain was flowing out of Ukraine at a record pace on Monday under an initiative led by the United Nations aimed at easing global food shortages despite Russia warning it was risky to continue after it pulled out of the pact.

Dalian's most active soyoil contract DBYcv1 rose 1.8%, while its palm oil contract DCPcv1 jumped 4.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.6%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Sunflower oil shipments from the Black Sea region have been hampered by the Russia-Ukraine conflict and could be further disrupted by Russia's withdrawal from the Black Sea pact.

Palm oil may retest a support of 4,007 ringgit a tonne, a break below which could open the way towards 3,850-3,929-ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian shares rose and bond yields firmed in early trade on Tuesday despite mild losses from Wall Street overnight as investors turned their focus to the Federal Reserve's policy meeting this week for hints on what comes next.
By: via Malaysian Palm Oil Council Russia