Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil extends gains, hovers near two-week high
2023/04/04 11:42 AM

KUALA LUMPUR, April 4 (Reuters) - Malaysian palm oil futures gained ground on Tuesday and remained within touching distance of a two-week peak reached in the previous session following a surge in crude prices.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange gained 26 ringgit, or 0.67%, to 3,910 ringgit ($887.22) a tonne during early trade.

The contract jumped 3.3% on Monday, tracking a spike in crude prices after the OPEC+ group jolted markets with plans to cut more production.

FUNDAMENTALS
Oil prices steadied after OPEC+ plans to cut more production jolted markets the previous day, with investors' attention shifting to demand trends and the impact of higher prices on the global economy.

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

Exports of Malaysian palm oil products for March rose 24.7% to 1,411,707 tonnes from 1,131,939 tonnes shipped during February, cargo surveyor Societe Generale de Surveillance said on Monday.

Dalian's most-active soyoil contract DBYcv1 gained 0.9%, while its palm oil contract DCPcv1 rose 1.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%.

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

Palm oil may gain further to 3,963 ringgit per tonne, as it has broken a resistance at 3,853 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Exports of Malaysian palm oil products for March rose 24.7% to 1,411,707 tonnes from 1,131,939 tonnes shipped during February, cargo surveyor Societe Generale de Surveillance said on Monday.
By: via Malaysian Palm Oil Council Russia