VEGOILS-Palm rebounds 3% as crude, rival edible oils gain
By Carman Chew
SINGAPORE, June 28 (Reuters) – Malaysian palm oil futures rose 3% on Wednesday, rebounding from the previous session’s losses, as crude and rival edible oils gained.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange climbed 108 ringgit or 2.94%, to 3,783 ringgit ($811.11) per metric ton by the midday break.
Earlier in the day, the benchmark contract rose 3.35% to 3,798 ringgit, its highest since June 19.
“Palm futures started off the day strong, locking in triple-digit gains across the board in early trade, helped by strength in related vegetable oils, while the widening palm olein discount to bean oil offered optimism for some recovery in exports in July,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Dalian’s most-active soyoil contract DBYcv1 strengthened 0.6%, while its palm oil contract DCPcv1 was up 2.1%. Soyoil prices on the Chicago Board of Trade BOcv1 climbed 1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil prices edged higher after industry data showed a larger-than-expected drawdown of U.S. inventories, signalling robust demand from the world’s biggest oil consumer, although gains were limited by worries over interest rate hikes. O/R
Higher oil prices make palm oil a more attractive option as biodiesel feedstock.
The Malaysian government has agreed to restructure the debt of state palm oil plantation agency Felda through the issuance of sukuk and revolving credit, the finance ministry said.
Exports of Malaysian palm oil products for June 1-25 fell 4.5% from a month earlier, independent inspection company AmSpec Agri Malaysia said. Cargo surveyor Intertek Testing Services said exports declined 8.7% during the same period.
Malaysia’s financial markets will be closed on Thursday for a national holiday. Trading will resume on Friday, June 30.
($1 = 4.6640 ringgit)
(Reporting by Carman Chew; Editing by Subhranshu Sahu)
Source Link: https://www.nasdaq.com/articles/vegoils-palm-rebounds-3-as-crude-rival-edible-oils-gain
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