February 7, 2022: Malaysian palm oil futures rebounded on Monday after the first weekly loss in seven weeks, tracking other vegetable oils and stronger crude oil prices.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 1.09% to 5,678 ringgit ($1,357.07) per tonne in early trade.
FUNDAMENTALS
Market participants are still assessing the impact of Indonesia's new curbs on palm exports, after the world's top palm oil producer and exporter shocked global edible oil markets last month by implementing a new rule that made it mandatory for producers to sell 20% of their output to domestic consumers at fixed prices.
The rule change has clouded the outlook for crude palm oil supplies from Indonesia and upended global edible oil markets by making what is traditionally the cheapest vegetable oil the costliest among the three major edible oils traded across the world.
Dalian's most-active soyoil contract rose 5.94%, while its palm oil contract gained 4.77%. Soyoil prices on the Chicago Board of Trade were up 1.36%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm may break a resistance at 5,676 ringgit per tonne and rise to 5,749 ringgit, driven by a wave 5-3, said Reuters technical analyst Wang Tao.
MARKET NEWS
Asian share markets mostly eased, after stunningly strong U.S. jobs data soothed concerns about the global economy but also added to the risk of an aggressive tightening by the Federal Reserve.
Oil prices rose, reversing earlier losses, as investors kept bullish sentiment on expectations that global supply would remain tight as demand picks up and shrugged off signs of progress in the U.S.-Iran nuclear talks.
Reuters
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