VEGOILS-Palm climbs for fourth session to hit six-week high
Today Online (24/02/2021) - KUALA LUMPUR, Feb 24 - Malaysian palm oil futures rose on Wednesday for a fourth straight session to hit a six-week high, tracking a rally in rival Dalian and Chicago Board of Trade soyoil on concerns over tightening soybean supply.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 46 ringgit, or 1.25%, to 3,722 ringgit ($921.74) a tonne in early trade, its highest since Jan. 13.
Traders are now awaiting Feb. 1-25 cargo surveyor export data due on Thursday for more direction.
FUNDAMENTALS
* Consultancy AgRural said on Monday the soy harvest pace in Brazil was the slowest in a decade, adding to market concerns over the already tight supply situation in the United States.
* Soyoil prices on the Chicago Board of Trade were up 0.7%. Dalian's most-active soyoil contract rose 1.9%, while its palm oil contract gained 2.3%.
* 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 test a resistance at 3,752 ringgit per tonne, a break above which could lead to a gain to 3,834 ringgit, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Bond markets steadied, the U.S. dollar fell and stocks edged ahead after central banks from Washington to Wellington vowed to keep monetary policy loose for a long time, giving investors enough confidence to seek out riskier assets.
* Oil prices fell in early trade after industry data showed U.S. crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
DATA/EVENTS
0700 Germany GDP Detailed QQ SA, YY NAS Q4
0745 France Business Climate Mfg Feb
1430 UK BOE Governor Andrew Bailey and other top officials from the Bank of England speak about the chances of economic recovery and their stimulus options to lawmakers
1500 US New Home Sales-Units Jan ($1 = 4.0380 ringgit) REUTERS
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