Investing.com (08/03/2021) - KUALA LUMPUR, March 8 (Reuters) - Malaysian palm oil futures ended nearly 4% higher on Monday, tracking a sharp rise in rival soyoil, crude and world markets on passage of a large U.S. stimulus package, while investors also awaited the Malaysian Palm Oil Board data.

Rising for a fourth straight session, the benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange ended up 3.7% at 3,878 ringgit a tonne by the midday break, highest since Jan. 7.

Palm rose to a more than 10-year high earlier in the session, climbing an intraday high of 5.7%.

The morning rally in crude oil futures led grains and oilseeds higher along with palm oil futures, but palm prices are heavily off-balanced compared to fundamentals, said Marcello Cultrera, institutional sales manager & broker at Phillip Futures in Kuala Lumpur.

"The bullish externals are currently overpowering palm oil's own fundamentals and the market is ignoring the possible recovery in production and increase in palm oil inventories," said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Investors are now awaiting for the February supply and demand data by the Malaysian Palm Oil Board, and cargo surveyor data for March 1 to 10 exports due Wednesday.

In key palm destination China, concerns over the African Swine Fever outbreak killing more pigs has led to negative crush margins for soybeans, which may hit soymeal demand and increase the country's vegetable oil imports, Bagani said. most-active soyoil contract DBYcv1 rose 4.8%, while its palm oil contract DCPcv1 gained 4%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 1.5%.

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

Oil prices slipped after surging above $70 a barrel for the first time since the COVID-19 pandemic began, while U.S. crude touched its highest in more than two years, making palm a more attractive option for biodiesel feedstock. O/R

Malaysia's palm oil sector stands to lose an estimated 11.83 billion ringgit ($2.89 billion) in annual revenue due to worker shortage that has been exacerbated by pandemic-driven border closures and restrictions on entry of foreign workers, an industry grouping said on Monday.

($1 = 4.0880 ringgit)

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