Palm oil hits one-week high on tight supply hopes

December 07, 2021: Malaysian palm oil futures rose on Tuesday, hitting a one-week high on expectations of a decline in November stockpile and production.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 69 ringgit, or 1.43%, to 4,814 ringgit ($1,137.79) a tonne during early trade, its highest since Nov. 29.

It had gained 0.6% during its first-night trading session on Monday.

FUNDAMENTALS

* Malaysia's palm oil inventories at end-November likely slipped 3.5% from the previous month to a four-month low of 1.77 million tonnes, a Reuters survey showed on Monday.

* The Malaysian Palm Oil Association estimated production in November declined 4.74% from the month before to 1.65 million tonnes, traders said on Monday.

* Investors are awaiting official data from the Malaysian Palm Oil Board due Friday.

* Dalian's most-active soyoil contract rose 0.4%, while its palm oil contract rose 0.6%. Soyoil prices on the Chicago Board of Trade were up 0.4%.

* 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 break a resistance at 4,812 ringgit per tonne and rise into a range of 4,873-4,948 ringgit, Reuters technical analyst Wang Tao said.

Reuters

Posted on: 2021-12-07T09:14:15+05:00

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