VEGOILS-Palm oil climbs for fifth day on supply worries, hit one-month high
09/05/2023 (Nasdaq), Kuala Lumpur - Malaysian palm oil futures reversed early losses on Tuesday to scale to their highest closing in a month, as traders assessed slow exports against forecasts of a steep drop in supply ahead of key data.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange closed up 42 ringgit, or 1.12%, to 3,804 ringgit ($857.72) a tonne, extending a four-session winning streak.
Palm earlier fell as much as 2.45%.
"Market is pricing in a possible dip in end-April stocks and the weather vagaries that comes along with the emergence of El Niño," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
In related oils, Dalian's most-active soyoil contract DBYcv1 fell 1.2%, while its palm oil contract DCPcv1lost 0.1%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.4%.
The United Nations said on Sunday or Monday under a deal allowing the safe Black Sea export of Ukraine grain, which Moscow has threatened to quit on May 18 over obstacles to its own grain and fertilizer exports.
($1 = 4.4350 ringgit)