Palm oil rises for fourth day to near three-week peak

April 13, 2022: Malaysian palm oil futures rose for a fourth consecutive session on Wednesday, lingering near a three-week high, tracking strength in Dalian oils and crude futures.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange gained 64 ringgit, or 1.04%, to 6,243 ringgit ($1,476.76) a tonne during early trade, its highest since March 24.

FUNDAMENTALS

Exports of Malaysian palm oil products for April 1-10 fell 20.7% from the same period in March, cargo surveyor Societe Generale de Surveillance said on Tuesday. Read full story

Oil prices climbed on worries that sliding output in sanctions-hit Russia, the world's second-biggest oil exporter, will tighten supply after Moscow said peace talks to resolve its invasion of Ukraine had come to a dead end. 

Stronger crude makes palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract DBYcv1 rose 1%, while its palm oil contract DCPcv1 gained 2.2%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.01%.

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

Palm oil may test a resistance at 6,326 ringgit a tonne, a break above which could lead to a gain into the 6,454-6,548 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

Asian shares rose on Wednesday, boosted by U.S. inflation figures that fared better than markets' worst expectations - and caused U.S. yields to pause their march higher - though Chinese shares remained pressured by COVID-19.

Reuters