15.02.2021 (in.investing.com) - SINGAPORE, Feb 15 (Reuters) - Malaysian palm oil futures climbed 2% on Monday, bouncing back from the last session's losses, as a spike in crude oil prices made the vegetable oil a more attractive feedstock option for biodiesel.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange rose 70 ringgit to 3,628 ringgit ($898.69) a tonne in early trade, on track for a sixth session of gain in seven.

"Crude oil moved up sharply this morning," a Kuala Lumpur-based trader told Reuters, adding that higher U.S. soybean oil prices also supported prices.

Oil prices rose to their highest in more than a year, after a Saudi-led coalition fighting in Yemen said it intercepted an explosive-laden drone fired by the Iran-aligned Houthi group, raising fears of fresh Middle East tensions. crude oil prices increase demand for palm oil as a feedstock for biodiesel. Top palm producer Indonesia requires its diesel to be blended with at least 30% of bio-content made up of palm.

Soyoil on the Chicago Board of Trade rose 0.9% on Friday. BOc2

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 support at 3,545 ringgit per tonne and fall to 3,466 ringgit, as the rise from 3,210 ringgit may have ended around a resistance at 3,673 ringgit, Reuters technicals analyst Wang Tao said. TECH/C

FUNDAMENTALS

* Asian shares advanced to record highs as successful coronavirus vaccine rollouts globally raise hopes of a rapid economic recovery amid new fiscal aid from Washington. MKTS/GLOB DATA/EVENTS (GMT) 0630 India WPI Inflation YY

Jan 1100 EU

Reserve Assents Total Jan 1400 Euro zone finance ministers meet

($1 = 4.0370 ringgit)

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