VEGOILS-Palm tracks rival CBOT soyoil higher, India tariffs weigh
16.02.2021 (www.todayonline.com) - SINGAPORE, Feb 16 - Malaysian palm oil futures climbed on Tuesday, tracking gains in rival soyoil on the Chicago Board of Trade (CBOT), although higher tariffs imposed by top buyer India weighed on the market.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 46 ringgit, 1.4%, to 3,570 ringgit ($886.74) a tonne in early trade.
The benchmark contract for April delivery had advanced more than 4% in the previous session on higher crude oil prices. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
CBOT soybeans rose for a third straight session on Tuesday while the soyoil contract was last up 1.9%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Meanwhile, higher taxes imposed by top palm importer India capped the gains. India has raised the base import price of crude palm oil by $32 to $1,045 per tonne.
Palm oil may test a resistance at 3,752 ringgit per tonne, a break above which could lead to a gain into a range of 3,801-3,834 ringgit, Reuters analyst Wang Tao said.
FUNDAMENTALS
* Oil prices rose as a cold front shut wells and refineries in Texas, the biggest crude producing state in the United States, the world's biggest oil producer. DATA/EVENTS (GMT) 1000 Germany Zew Economic Sentiment Feb 1000 Germany Zew Current Conditions Feb 1000 EU GDP Flash Estimate QQ, YY Q4 ($1 = 4.0260 ringgit) REUTERS