Palm oil hits near five-week high ahead of export data

April 20, 2022: Malaysian palm oil futures hit a near five-week high on Wednesday, tracking strength in rival soyoil and crude, while investors awaited data on April export performance.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange gained 68 ringgit, or 1.05%, to 6,531 ringgit ($1,526.65) a tonne during early trade.

FUNDAMENTALS

* Cargo surveyors are scheduled to release data on Malaysia's export shipments during April 1-20 later in the day.

* Indonesia exported 2.098 million tonnes of palm oil and its refined products in February, up 1.35% annually, while production rose 13.8%, data from Indonesia Palm Oil Association (GAPKI) showed on Tuesday.

* Oil prices rose about 1%, gaining back some of their losses during the previous session on concerns about energy demand after the International Monetary Fund (IMF) cut its economic growth forecasts.

* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

* Dalian's most-active soyoil contract DBYcv1 rose 0.1%, while its palm oil contract DCPcv1 fell 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.8%.

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

MARKET NEWS

* Oil and stock markets were under pressure on worries about the fallout from China's pandemic lockdowns, while the yen slightly extended its record losing streak as traders put Japan's ultra-easy monetary policy settings to the test.

Reuters