VEGOILS-Palm oil gains for fifth straight day on stronger soyoil, crude
09.03.2021 (www.todayonline.com) - KUALA LUMPUR, March 9 - Malaysian palm oil futures rose for a fifth straight session on Tuesday, tracking gains in crude and soyoil, as adverse weather in South America stoked supply concerns.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit, or 0.85%, to 3,911 ringgit ($948.12) a tonne in early trade.
Palm touched 10-year highs on Monday before closing 3.6% higher.
Traders are awaiting official February supply and demand data, and cargo surveyor export data due on Wednesday.
FUNDAMENTALS
* Dalian's most-active soyoil contract rose 2%, while its palm oil contract gained 0.6%. Soyoil prices on the Chicago Board of Trade were up 0.7%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices rose expectations of a recovery in the global economy after U.S. Senate approval of a $1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States, making palm a more attractive option for biodiesel feedstock.
* Palm oil may drop into a range of 3,801-3,834 ringgit, following its failure to break a resistance at 3,959 ringgit per tonne, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian stocks were set for a strong open on Tuesday, helped mostly by global recovery prospects and the passage of a $1.9 U.S. trillion stimulus bill, shaking off a mixed Wall Street session after a big downturn in tech shares.
DATA/EVENTS
1000 EU GDP Revised QQ, YY Q4
($1 = 4.1250 ringgit) REUTERS