17/10/2022 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures rose for a third consecutive session to its highest in six weeks on Tuesday, helped by the decline in the ringgit and concerns over global edible oil supply.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 58 ringgit, or 1.49%, to 3,945 ringgit ($836.16) a tonne during early trade.

FUNDAMENTALS

* The ringgit MYR=, palm's currency of trade fell 0.06% against the dollar to its lowest since 1998, making the commodity cheaper for holders of foreign currency.

* The palm market was supported by concerns over supply disruption as Russia threatened to pull out of an agreement on Black Sea grain exports, Refinitiv Commodities Research said in a note late Monday.

* Exports of Malaysian palm oil products for Oct. 1-15 fell 0.9% to 640,119 tonnes from the same period in September, cargo surveyor Societe Generale de Surveillance said on Tuesday.

* Dalian's most-active soyoil contract DBYcv1 gained 0.1%, while its palm oil contract DCPcv1 gained 1%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.5%.

* 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 resistance at 3,924 ringgit per tonne and rise into 3,958-4,001-ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asia stocks nudged higher on Tuesday as the dramatic U-turn in British fiscal policy brightened investor sentiment, while the U.S. dollar took a breather at its lowest levels in more than a week as a revival in risk-taking lowered its appeal. MKTS/GLOB

Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-climbs-to-six-week-high-on-weak-ringgit-supply-woes