VEGOILS-Palm rises for third day on Dalian gains, stronger crude oil
20.02.2023 (Nasdaq) - JAKARTA, Feb 20 (Reuters) - Malaysian palm oil futures rose for a third consecutive session on Monday, tracking strength in rival edible oils in China and crude oil.
The benchmark palm oil contract FCPOc3 for May delivery rose 1.55% to 4,195 ringgit ($947.81) per tonne by the midday break, after gaining 5.11% in the last two sessions.
The contract hit the highest in more than four weeks earlier in the session, riding on "spillover strength from the Dalian commodity exchange", said a Kuala Lumpur-based trader, adding that a recovery in crude oil also helped the market.
Dalian's most-active soyoil contract DBYv1 gained 1.09%, while its palm oil contract DCPv1 rose 1.60%. The Chicago Board of Trade was closed for a public holiday.
Palm is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices edged higher on optimism about China's demand recovery, after losing around 4% last week, though concerns over rising supplies in the United States and forecasts of more interest rate hikes tempered gains. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may retest a resistance zone of 4,155-4,196 ringgit per tonne, probably after a moderate consolidation in the narrow range of 4,083-4,155 ringgit, said Reuters technical analyst Wang Tao. TECH/C
($1 = 4.4260 ringgit)
(Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu)
((Fransiska.Nangoy@thomsonreuters.com;))
https://www.nasdaq.com/articles/vegoils-palm-rises-for-third-day-on-dalian-gains-stronger-crude-oil