VEGOILS-Palm oil rises for third straight day on Indonesia supply worries
07.02.2023 (Nasdaq) - KUALA LUMPUR, Feb 8 (Reuters) - Malaysian palm oil futures ticked up for the third session in a row on Wednesday, underpinned by concerns of tightening Indonesian supply as the world's largest producer reviews its palm oil export quota.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 13 ringgit, or 0.33%, to 3,952 ringgit (about $920) a tonne during early trade.
FUNDAMENTALS
* Indonesia will review its palm oil export quota ratios amid rising prices of domestic cooking oil, the Coordinating Ministry of Maritime and Investment Affairs said on Monday.
* A new European Union law preventing the import of commodities linked to deforestation risks sidelining small farmers who are unable to meet the burdensome cost of compliance, the Roundtable on Sustainable Palm Oil (RSPO) said on Tuesday.
* Dalian's most-active soyoil contract DBYcv1 rose 1.2%, while its palm oil contract DCPcv1 gained 1.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.1%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices rose, extending gains from the previous two days, as the dollar fell after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than markets had expected and as U.S. crude stocks surprisingly fell. O/R
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
MARKET NEWS
* Asian equities rose, while the dollar wobbled on Wednesday after less hawkish than feared comments from Federal Reserve Chair Jerome Powell boosted risk appetite and investor hopes that the central bank may soon ease monetary policy. MKTS/GLOB
DATA/EVENTS
No major data/events expected on Wednesday, Feb. 8
($1 = 4.2960 ringgit)
(Reporting by Mei Mei Chu; Editing by Savio D'Souza)