VEGOILS-Palm oil climbs, perched at highest levels in over a year
KUALA LUMPUR, March 14 (Reuters) – Malaysian palm oil futures rose for a fourth consecutive session on Thursday, trading at highs last seen over a year ago, as stronger rival edible oils and crude oil prices underpinned the market.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange gained 101 ringgit, or 2.41%, to 4,296 ringgit ($916.97) during early trade.
The contract closed at its highest levels since March 9, 2023 on Wednesday.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYcv1 rose 2.06%, while its palm oil contract DCPcv1 added 3.34%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.64%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil extended gains in Asian trade on Thursday after a surprise drop in U.S. crude stockpiles indicated strengthening demand, while possible supply disruptions following Ukrainian attacks on Russian refineries also underpinned prices. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* Malaysia’s palm oil stocks at the end of February dwindled to their lowest levels in seven months as production hit a 10-month low, offsetting the slowdown in exports.
* Inventories at the end of last month fell 5% to 1.92 million metric tons from levels seen in January, crude palm oil production declined 10.18% to 1.26 million tons, while exports plunged 24.75%, data from industry regulator the Malaysian Palm Oil Board showed on Monday.
* India’s palm oil imports plunged to their lowest level in nine months in February, as higher prices prompted buyers to reduce purchases of the tropical oil in favour of rival sunflower oil, a leading trade body said on Wednesday.
MARKET NEWS
* Asian shares held near seven-month highs on Thursday though they traded mostly sideways, as investors awaited fresh catalysts that would provide further clarity on the global interest rate easing cycle. MKTS/GLOB
DATA/EVENTS
1230 US Initial Jobless Clm Weekly
1230 US PPI Machine Manuf’ing Feb
1230 US Retail Sales MM Feb
($1 = 4.6850 ringgit)
Source Link : https://www.nasdaq.com/articles/vegoils-palm-oil-climbs-perched-at-highest-levels-in-over-a-year?time=1710385912
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