Palm extends gains

January 21, 2022: Malaysian palm oil futures rose for the third straight session on Friday, after hitting a record high of 5,231 ringgit ($1,249.94) during overnight trade.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 14 ringgit, or 0.27%, to 5,201 ringgit a tonne by 0240 GMT., 

It had gained 0.69% overnight, gaining strength from a firm external market and news of Indonesia's plan to limit palm oil exports, which could cut global supply of the edible oil.

The contract is set for a fifth consecutive weekly climb, having risen 1.6% so far this week.

FUNDAMENTALS

Indonesia's plan to limit palm oil exports that has driven prices to record highs is likely to make leading importer India shift to substitute soy and sunflower oils, potentially capping the market's rally, industry officials and analysts said.

Exports of Malaysian palm oil products for Jan. 1-20 fell 43.1% to 626,029 tonnes from Dec. 1-20, cargo surveyor Societe Generale de Surveillance said.

Dalian's most-active soyoil contract rose 1.2%, while its palm oil contract gained 0.7%. Soyoil prices on the Chicago Board of Trade were down 1.1%, after jumping 3.5% overnight.

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

Palm oil looks shaky around a previous high of 5,220 ringgit per tonne. It may test a support at 5,174 ringgit, Reuters technical analyst Wang Tao said.

Reuters

Posted on: 2022-01-21T09:00:49+05:00

30327