Palm snaps 4-day losing streak on higher early-March exports boost

March 16, 2022: Malaysian palm oil futures jumped 2% on Wednesday, snapping a four-day slump, as upbeat exports for the first half of March underpinned prices, although the gains were capped by uncertainties over Indonesian policies.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange rose 136 ringgits, or 2.34%, to 5,941 ringgit ($1,416.21) a tonne during early trade, after a four-day slump. The contract rolled over to a new month.

FUNDAMENTALS

* Top producer Indonesia will remove retail price caps for packaged cooking oil and will subsidise bulk sales to try to ensure supply at retail markets after previous price controls resulted in a scarcity, senior officials said on Tuesday.

* Exports of Malaysian palm oil products for Mar. 1-15 rose between 13.2% and 15.6% from the same period in February, cargo surveyors’ data showed on Tuesday.

* Dalian's most-active soyoil contract DBYcv1 rose 1.2%, while its palm oil contract DCPcv1 was up 1%. Soyoil prices on the Chicago Board of Trade BOcv1 gained 0.04%.

* 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 bounce into a range of 6,548 ringgit to 6,686 ringgit per tonne, following the completion of a wave c from 7,268 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian markets rose on a rebound in battered Chinese stocks and ahead of a closely-watched meeting of the U.S. Federal Reserve, while oil prices remained volatile as investors weighed the outcome of Ukraine peace talks. MKTS/GLOB

* Oil prices rose early on Wednesday, bouncing back after earlier falling more than $1 a barrel, as Russia's invasion of Ukraine continues to dominate volatile trading with ceasefire talks the latest market trigger.

Reuters