Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil climbs for fifth day to seven-week peak

KUALA LUMPUR, Oct 20 (Reuters) - Malaysian palm oil futures extended a rally on Thursday to a fifth straight session, touching their highest level in seven weeks lifted by a weakening ringgit and gains in rival edible oils.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgit, or 1.12%, to 4,164 ringgit ($881.08) a tonne during early trade.

FUNDAMENTALS
Concerns over rainy weather triggered reduced production in top producers Indonesia and Malaysia, as well as fears of higher Indian import taxes helped supported prices.

Dalian's most-active soyoil contract DBYcv1 rose 1%, while its palm oil contract DCPcv1 gained 2.2%. Soyoil prices on the Chicago Board of Trade BOcv1 slipped after a 1.7% overnight rise.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

The ringgit MYR=, palm's currency of trade, fell 0.17% against the dollar, making it cheaper for buyers holding foreign currency.

Palm oil may test a resistance zone of 4,184-4,194 ringgit per tonne, with a good chance of breaking above this range and rising to 4,253 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian share markets fell on Thursday as investor fears over a looming recession crimped risk appetite, while Treasury yields rose on expectations that the Federal Reserve will remain aggressive in its interest rate hikes.
By: via Malaysian Palm Oil Council Russia