Palm extends gains ahead of key March data

April 11, 2022: Malaysian palm oil futures rose on Monday ahead of official March supply-demand data, extending gains as a forecast of tighter supplies for rival soyoil underpinned the market.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange gained 71 ringgit, or 1.2%, to 5,992 ringgit ($1,417.89) a tonne in early trade.

Last week, palm had gained 6.4%.

FUNDAMENTALS

* Exports of Malaysian palm oil products for April 1-10 fell 25.6% to 278,621 tonnes from the same week in March, cargo surveyor Intertek Testing Services said on Sunday.

* Oil prices slipped $2 a barrel in early Asian trading, following a second straight weekly decline after world consumers announced plans to release a record volume of crude and oil products from strategic stocks and as China lockdowns continued.

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. O/R

* Chicago Board of Trade soybean futures climbed on Friday after the U.S. Department of Agriculture lowered its forecast for South American production and also cut its estimate for U.S. stocks.

* Soyoil prices on the Chicago exchange BOcv1 retreated 1% following a near 3% rise on Friday. Dalian's most-active soyoil contract DBYcv1 gained 0.4%, while its palm oil contract DCPcv1 rose 0.3%.

* Palm oil is biased to break a resistance at 5,966 ringgit tonne and edge up to the next resistance at 6,104 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares slipped on Monday ahead of a week packed with central bank meetings and U.S. inflation data, while the euro eked out a gain on relief the far right did not win the first round of the French presidential elections.

Reuters