Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm oil surges on stronger rival oils, set to post weekly gains

JAKARTA, May 5 (Reuters) - Malaysian palm oil futures rose on Friday and are set to post a weekly gain, supported by gains in some rival vegetable oils.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange gained 82 ringgit, or 2.39%, to 3,507 ringgit ($790.76) a tonne during early trade. The contract has gained 5% so far in the week.

FUNDAMENTALS
Malaysia's palm oil inventories at the end of April are forecast to drop to their lowest level in 11 months as domestic use rises amid flat production, a Reuters survey showed on Friday.

India's palm oil imports in April fell 30% from a month earlier to hit a 14-month low, as its premium over rival soft oils prompted price-sensitive buyers to shift to sunflower oil and soyoil, five dealers told Reuters on Wednesday.

Palm oil FCPOc3 may bounce further to 3,504 ringgit per tonne, as suggested by a falling channel.

Dalian's most-active soyoil contract DBYcv1 dropped 0.11%, while its palm oil contract DCPcv1 increased 1.72%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.15%.

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

MARKET NEWS
A global measure of stocks fell for the fourth consecutive day, while the dollar gained some ground as the European Central Bank raised rates on Thursday and signalled the need for more tightening a day after the U.S. Federal Reserve also raised rates.
By: via Malaysian Palm Oil Council Russia