Today Online (05/04/2021) - KUALA LUMPUR, April 5 - Malaysian palm oil futures rose nearly 1.5% on Monday to hit a one-week high, tracking strong rival soyoil and on expectations of sustained tight supply.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 53 ringgit, or 1.42%, to 3,790 ringgit ($915.46) a tonne during early trade, its highest since March 25.

Production in March likely rose 21% month-on-month while export volumes probably grew 25%, with stockpile at the end of month seems to have inched up to 1.31 million tonnes, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.

"Tight supply is likely to keep prices elevated, but signs of recovering supply could limit upside," she added.

FUNDAMENTALS

* Malaysian Palm Oil Council said it expects the benchmark crude palm oil price to average 3,846 ringgit a tonne during the second quarter of the year and will peak at 4,190 ringgit a tonne.

* The Malaysian Palm Oil Board raised its forecast for palm oil export revenue in 2021 to 75 billion ringgit ($18.12 billion), up from 73.25 billion ringgit ($17.69 billion) last year.

* Soyoil prices on the Chicago Board of Trade were up 1.4%. The Dalian exchange is closed for a public holiday.

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

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* Palm oil may test a resistance at 3,810 ringgit per tonne, with a good chance of breaking above this level and rising into 3,887-4,011 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Global stock prices rose to a 1 1/2-month high on Monday after data showing a surge in U.S. employment while short-dated U.S. bonds came under pressure on worries the Federal Reserve may bump up interest rates sooner than it has indicated.

DATA/EVENTS (GMT)

0500 India IHS Markit Mfg PMI March

0600 Russia Markit Services PMI March

1345 US Markit Comp, Svcs PMI Final March

1400 US Factory Orders MM Feb

1400 US ISM N-Mfg PMI March REUTERS

Read more at https://www.todayonline.com/world/vegoils-palm-oil-1-week-high-tight-supply-forecast-soyoil-strength