MARKET DEVELOPMENT
Palm extends gains for third day on soy oil strength
Palm extends gains for third day on soy oil strength
29.07.2022 (www.hellenicshippingnews.com) - Malaysian palm oil futures posted gains for a third straight session on Thursday as soy oil climbed on concerns over tight soybean harvest and market participants resumed bargain-hunting.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange rose 3.53% to close the afternoon session at 3,961 ringgit ($889.91) per tonne. It rose as much as 5.23% earlier in the day to touch its highest in a week.
Palm oil was helped by strength in rival vegetable oils on Thursday, a trader in Kuala Lumpur said, adding that palm oil “remains very cheap” compared to soyoil.
The contract has fallen sharply over the past two months as rival Indonesia resumed exports. So far in July, it has lost 19% after posting a 22% decline in June.
On Thursday, Dalian’s most-active soyoil contract DBYv1 rose 5.15% to its highest since July 1, while its palm oil contract DCPv1 gained 6.58%. Soyoil prices on the Chicago Board of Trade BOc2 rose 2.39%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Chicago soybean futures rose for a fifth consecutive session on Thursday to their highest in more than two weeks, as hot and dry weather conditions expected in parts of the U.S. Midwest threaten to reduce yields. GRA/
Meanwhile, crude palm oil exports from top producer Indonesia are picking up pace, reaching 100,000 tonnes to 140,000 tonnes per day after the government waived its export levy to ease a supply glut, a senior Finance Ministry official said on Wednesday.
Palm oil may test a resistance of 4,085 ringgit per tonne, a break above which could lead to a gain to 4,269 ringgit, Reuters technical analyst Wang Tao said. TECH/C
Source: Reuters (Reporting by Fransiska Nangoy; Editing by Uttaresh.V, Subhranshu Sahu and Shounak Dasgupta)
https://www.hellenicshippingnews.com/palm-extends-gains-for-third-day-on-soy-oil-strength/