Palm oil edges up to mirror strength in rivals
Malaysian palm oil futures surged on Monday, tracking gains in soyoil and crude oil. The July contract on Bursa Malaysia rose 22 ringgit to 3,866 ringgit per metric ton. Last week, it dropped 1.33% amid export concerns in Malaysia. Dalian’s soyoil and palm oil contracts increased, while soyoil prices on the Chicago Board of Trade climbed. The outlook for soybean harvest in Rio Grande do Sul worsened due to flooding.
SINGAPORE, May 6 (Reuters) -Malaysian palm oil futures rose on Monday, tracking rivals soyoil and crude oil higher.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange rose 22 ringgit, or 0.57%, to 3,866 ringgit ($815.78) a metric ton as of 0238 GMT.
It lost 1.33% last week amid export concerns in key producer Malaysia.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 rose 1.02%, while its palm oil contract DCPcv1 gained 0.35%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 0.88%.
* The outlook for the soybean harvest in Rio Grande do Sul has deteriorated swiftly after torrential rain flooded fields.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil edged up after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil-producing region. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* The Malaysian ringgit MYR=, palm’s currency of trade, weakened 0.02% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
* Palm oil still targets a range of 3,899 ringgit to 3,926 ringgit per ton as it has stabilised around a support at 3,812 ringgit, said Reuters technical analyst Wang Tao. TECH/C
Source Link: https://www.xm.com/research/markets/allNews/reuters/palm-oil-edges-up-to-mirror-strength-in-rivals-53830431
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