Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil gains as Malaysia floods fuel supply concerns

KUALA LUMPUR, Dec 20 (Reuters) - Malaysian palm oil futures rose for a third session on Tuesday, lifted by stronger rival oils and crude prices as flooding across the world's second-largest producer fuelled concerns over production and possible supply disruption.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 52 ringgit, or 1.32%, to 3,981 ringgit ($897.83) a tonne during early trade.

FUNDAMENTALS
Wet weather conditions in Malaysia will prevail through late-December, raising flooding risks and disrupting supplies in the near term, Refinitiv Agriculture Research said in a note late Monday.

Oil prices rose in early trade, shored up by a weaker dollar and a U.S. plan to restock its Strategic Petroleum Reserve, but gains were limited by uncertainty over the impact of rising COVID-19 cases in China.

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

Dalian's most-active soyoil contract DBYcv1 rose 0.2%, while its palm oil contract DCPcv1 gained 1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.4%.

Palm oil is biased to test a resistance of 4,029 ringgit per tonne, as it climbed above a lower resistance at 3,945 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian share markets were trading mostly in negative territory on Tuesday, as investors anticipated a somewhat rocky road for China's unwinding of COVID restrictions and the prospect that U.S interest rates will rise higher than expected in 2023.
By: via Malaysian Palm Oil Council Russia