Palm set for weekly gain on bargain-hunting

March 25, 2022: Malaysian palm oil futures were set for a weekly gain on Friday, as prices rose for a fourth session in five after falling to their worst week since 1986.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange rose 1.56% to 6,036 ringgit ($1,431.35) per tonne in early trade, recovering from a 4% drop on Thursday.

The contract has gained about 7% so far this week, recouping some of the previous week's 16% loss.

FUNDAMENTALS

Soyoil prices on the Chicago Board of Trade BOc2 were up 0.37%. Dalian's soyoil contract DBYc1 dropped 1.77%, while its palm oil contract DCPv1 fell 0.58%.

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

Top palm oil producers Indonesia and Malaysia remain committed to their mandatory biodiesel programmes despite higher prices of the feedstock to reach green energy goals, senior officials said on Thursday.

Palm oil may extend its loss into a range of 5,744 ringgit to 5,855 ringgit per tonne, following its failure to break a resistance at 6,326 ringgit, Reuters technical analyst Wang Tao said. TECH/C

Chicago soybean futures rose on Friday, with the market on track for a weekly gain as traders expect higher demand for U.S. supplies after drought curbed production in South America. GRA

MARKET NEWS

Asian shares were headed for a second successive week of gains, though trading was choppy amid hawkish U.S. monetary policy, shifts in Chinese economic policy, and ongoing ructions in commodity markets due to the war in Ukraine.

Reuters