February 22, 2022: Malaysian palm oil futures scaled an all-time high on Tuesday, extending gains to a fourth session, as threats of a Russia- Ukraine war lifted crude prices and boosted the appeal of tropical oil as a more attractive biodiesel feedstock option.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange rose 101 ringgit, or 1.78%, to 5,776 ringgit ($1,380.17) a tonne in early trade.
The spot contract climbed to an all-time high of 6,272 ringgit as investors priced in tightening supply following an upsurge in early February exports.
Oil prices jumped more than $2 to a fresh seven-year high after Moscow ordered troops into two breakaway regions in eastern Ukraine, escalating a crisis that western leaders have warned could spark a war. O/R
Tensions between Russia and Ukraine have also stoked worries over sunflower oil shipments from the Black Sea region, Refinitiv Agriculture Research said in a note on Monday.
Dalian's most-active soyoil contract DBYcv1 rose 1.6%, while its palm oil contract DCPcv1 jumped 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.5%.
Exports of Malaysian palm oil products for Feb. 1-20 rose 30.5% from the same period in January, cargo surveyor Societe Generale de Surveillance said.
Palm oil may test a resistance zone of 5,794-5,868 ringgit per tonne, a break above which could lead to a gain to 5,986 ringgit, Reuters technical analyst Wang Tao said.
Oil jumped to a seven-year high, safe-havens rallied and U.S. stock futures dived as Europe's eastern flank stood on the brink of war after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine.