Palm oil rises for fourth day on stronger rival oils
28/02/2024 (XM), Jakarta -Malaysian palm oil futures extended gains to a fourth straight session on Wednesday, tracking strength in rival vegetable oils, although weak export data limited gains.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange was up0.36%at 3,936 ringgit ($827.06) per metric ton by midday break.
"Sentiments are positive but the gains are small though, reflecting the buying momentum is kind of limited," said Sathia Varqa, senior analyst with Fastmarkets Palm Oil Analytics.
Output in February is expected to show a small decline in production against a larger drop in export, Varqa added.
The soyoil contract on the Dalian Commodity Exchange DBYcv1 was up 0.83%, while its palm oil contract DCPcv1 rose 1.01%.Meanwhile, soyoil prices on the Chicago Board of Trade BOc2 fell 0.26%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Indonesia's palm oil output this year is expected to rise by 5% year-on-year to 57.6 million tons, while export is expectedto stagnate at 32 million to 33 million tons, the Indonesia Palm Oil Association (GAPKI) said on Tuesday.
Exports of Malaysian palm oil products for the Feb. 1-25 period dropped between 6.3% and 14%, cargo surveyors data showed.
Oil prices slipped in early Asian trade, as the prospect of a delayed U.S. rate-cuttingcycle offset the boost provided by talk of extensions to production cuts from OPEC+. O/R
Palm oil FCPOc3 may break resistance at 3,938 ringgit per metric ton, and rise into 3,970-3,992 ringgit range. TECH/C