Palm ticks up on weak production outlook

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By MG News | January 12, 2022 at 09:15 AM GMT+05:00

0:00

January 12, 2022: Malaysian palm oil futures firmed on Wednesday, extending a three-day rally as industry estimates pointed to a steep drop in production.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 36 ringgit, or 0.71%, to 5,105 ringgit ($1,221.29) a tonne during early trade.

It had gained 0.53% overnight.

FUNDAMENTALS

* The Southern Peninsula Palm Oil Millers' Association (SPPOMA) estimated production during Jan. 1-10 declined 32% from the same week in December, traders said on Tuesday.

* Indonesia is expecting higher than usual rainfall to continue this year, its weather agency BMKG said, although the amount will be lower than that recorded in 2021.

* Dalian's most-active soyoil contract gained 0.2%, while its palm oil contract rose 1.1%. Soyoil prices on the Chicago Board of Trade were up 0.2%.

* 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 test a support at 5,002 ringgit per tonne, a break below which could open the way to 4,927 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Stocks and commodities rose in relief and the dollar hit a six-week low after Federal Reserve Chair Jerome Powell sounded less hawkish than expected in testimony to Congress, as he charts a path out of pandemic policy settings.

* Oil prices climbed after Powell signaled the central bank may raise rates more slowly than expected, which should support oil demand in the near term.

Reuters

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1202.91
KSE30 39,105.00
121.90M
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951.21
KMI30 186,915.61
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KMIALLSHR 54,201.88
553.60M
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9.77M
0.68%
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Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 105,810.00 106,200.00
105,440.00
60.00
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BRENT CRUDE 67.09 67.29
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-0.03%
RICHARDS BAY COAL MONTHLY 97.50 97.50
97.50
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ROTTERDAM COAL MONTHLY 103.80 103.80
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USD RBD PALM OLEIN 998.50 998.50
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CRUDE OIL - WTI 65.38 65.65
65.34
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SUGAR #11 WORLD 15.70 16.21
15.55
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-3.09%

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