PALM NEWS MALAYSIAN PALM OIL BOARD Wednesday, 28 Feb 2024

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MARKET DEVELOPMENT
Palm rises on stronger rival oils amid supply worries
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08/02/2024(XM), Kuala Lumpur - Malaysian palm oil futures extended gains for a fourth consecutive session on Thursday, buoyed by strength in rival edible oils and firmer crude oil prices amid supply concerns in the world's second-biggest producer.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 21 ringgit, or 0.54%, to 3,898 ringgit ($818.22) by midday.

There are concerns about supply constraints, with forecasts from Malaysian planters showing a sharp decline in production, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

"However, exports are expected to remain sanguine as there are signs of Indian buyers returning and anticipation for stockpiles to dip below the 2-million-ton threshold," Supramaniam said.

Malaysia's palm oil stocks likely fell for three straight months to end-January, in line with seasonal low production.

Palm oil stocks were seen falling to 2.14 million metric tons in January, down 6.62% from December, according to 10 traders, planters and analysts. Crude palm oil output was seen declining 11.83% from the previous month to 1.37 million tons.

The Malaysian Palm Oil Board will release its monthly data on Feb. 13.

Dalian's most-active soyoil contract DBYcv1 rose 0.7%,while its palm oil contract DCPcv1 added 1.15%.Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.17%.

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

Oil extended gains on Thursday after Israel rejected a ceasefire offer from Hamas, while a weaker dollar also supported prices. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm's currency of trade, fell 0.11%against the dollar, making the commodity less expensive for buyers holding the foreign currency.

Palm oil may retrace into a support zone of 3,808-3,814 ringgit per metric ton, following its failure to break resistance at 3,891 ringgit, Reuters technical analyst Wang Tao said. TECH/C

https://www.xm.com/research/markets/allNews/reuters/palm-rises-on-stronger-rival-oils-amid-supply-worries-53760121