Palm jumps as rival oils, crude rebound from Omicron battering

November 29, 2021:  Malaysian palm oil futures tracked rival edible oils and crude higher on Monday, as global markets recovered from a sell-off stoked by the discovery of the Omicron coronavirus variant last week.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 79 ringgit, or 1.63%, to 4,928 ringgit ($1,162.81) a tonne in early trade.

FUNDAMENTALS

* Oil prices rose as investors looked for bargains but remained cautious with the focus on the Omicron coronavirus variant and Iran nuclear deal negotiations.

* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

* The Omicron coronavirus variant spread around the world on Sunday, with new cases found in the Netherlands, Denmark and Australia even as more countries imposed travel restriction to try to seal themselves off.

* Dalian's most-active soyoil contract gained 0.3%, while its palm oil contract rose 0.5%. Soyoil prices on the Chicago Board of Trade were up 2%.

* 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 revisit its Nov. 9 low of 4,706 ringgit per tonne, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian markets regained a little composure as investors settled in for a few weeks of uncertainty on whether the Omicron variant would really derail economic recoveries and the tightening plans of some central banks.

Reuters

 

Posted on: 2021-11-29T09:05:18+05:00

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