09.11.2020 (www.todayonline.com) - KUALA LUMPUR, Nov 9 - Malaysian palm oil futures rose on Monday, their fourth daily rise in five, as crude and global equities gained strength after Democrat Joe Biden clinched the U.S. presidency, while lower stockpile outlook further supported prices.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 41 ringgit, or 1.3%, to 3,222 ringgit ($782.99) a tonne during early trade.

Palm rose 5.6% last week and touched eight-year highs, after polls showed lower-than-usual October inventories and production, as well as rising exports.

The Malaysian Palm Oil Board is expected to release October supply and demand data on Tuesday.

FUNDAMENTALS

* The Indonesian government may rein in its push to increase use of biodiesel as it now comes at higher cost following a fall in crude oil prices and sustained strength in crude palm oil prices, Fitch Ratings said.

* Dalian's most-active soyoil contract rose 0.9%, while its palm oil contract gained 0.3%. Soyoil prices on the Chicago Board of Trade were up 0.8%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Oil prices gained more than 2%, with Brent futures rising above $40 a barrel, after Joe Biden clinched the U.S. presidency and buoyed risk appetite, offsetting worries about impact on fuel demand from the worsening coronavirus crisis.

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

* Palm oil may fall into a range of 3,050-3,095 ringgit per tonne, following its failure to break a resistance at 3,261 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Shares surged, oil prices jumped and the dollar stayed weak, as expectations of fewer regulatory changes and more monetary stimulus under Biden supported risk appetite. REUTERS

Read more at https://www.todayonline.com/world/vegoils-palm-oil-rises-1-stronger-crude-global-shares-biden-wins