VEGOILS-Palm extends gains on stronger rival oils, lower output estimates
KUALA LUMPUR, Feb 6 (Reuters) – Malaysian palm oil futures rose for a second consecutive session on Tuesday, tracking strength in rival edible oils and buoyed by expectations of lower output in the world’s second-biggest producer.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange closed up 39 ringgit or 1.03%, to 3,841 ringgit ($806.42).
Palm rebounded with overnight recovery in rival oilseeds, a Kuala Lumpur-based trader said.
“Supportive Malaysian Palm Oil Board January polls showing lower production and endstocks, coupled with a weaker ringgit, also kept palm prices on a positive note.”
Dalian’s most-active soyoil contract DBYcv1 edged up 0.03%, while its palm oil contract DCPcv1 added 0.99%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.97%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
The ringgit MYR=, palm’s currency of trade, fell 0.32% against the dollar, making the commodity less expensive for buyers holding the currency.
Malaysia’s palm oil stocks likely fell for three straight months to the end of January, in line with seasonal low production, a Reuters survey showed on Monday.
Palm oil stocks were seen falling to 2.14 million metric tons in January, down 6.62% from December, according to 10 traders, planters and analysts. Crude palm oil output was seen at 1.37 million tons, an 11.83% decline from the previous month.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly data on Feb. 13.
India’s palm oil imports fell to a three-month low in January, as refiners increased buying of soyoil due to negative refining margins for crude palm oil, five dealers told Reuters on Monday.
($1 = 4.7630 ringgit)
(Reporting by Danial Azhar; Editing by Subhranshu Sahu, Mrigank Dhaniwala and Varun H K)
Source Link: https://www.nasdaq.com/articles/vegoils-palm-extends-gains-on-stronger-rival-oils-lower-output-estimates
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