02/04/2023 (Nasdaq), Singapore - Malaysian palm oil futures rose 2.5% on Monday with prices climbing to their highest in two weeks, underpinned by a rally in the crude oil market.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange added 94 ringgit, or 2.5%, to 3,855 ringgit ($872.17) a tonne in early trading. The market hit its highest since March 20 at 3,888 ringgit a tonne earlier in the session.

Oil prices jumped about $5 a barrel in Monday's open, jolted by a surprise announcement by OPEC+ to cut production further to support market stability. O/R

Palm oil often takes cues from energy markets with the growing use of the vegetable oil in making biofuels that compete with petroleum products.

Dalian's most-active soyoil contract DBYcv1rose 2.1%, while its palm oil contract DCPcv1 advanced 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 was up 2.2%.

Malaysia said on Sunday it has signed a memorandum of understanding with a China government-backed trade association to enhance palm oil trading and cooperation.

Palm oil FCPOc3 still targets 3,853 ringgit per tonne, as it has broken a resistance at 3,718 ringgit, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.4200 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-jumps-2.5-to-two-week-high-on-crude-rally