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VEGOILS-Palm oil gains for third day on expectations of weak January supply

· 02/07/2021 22:00
VEGOILS-Palm oil gains for third day on expectations of weak January supply

- Malaysian palm oil futures rose for a third straight session on Monday, tracking stronger rival soyoil, supported by expectations of weak January stocks and lower production.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 8 ringgit, or 0.24%, at 3,383 ringgit ($832.84) a tonne during early trade.

The contract fell 3.3% last week.

Investors are now eyeing official January supply and demand data, as well as February 1-10 export data, scheduled to be released on Wednesday.

FUNDAMENTALS

* Malaysia's palm oil inventories at the end of January likely ticked up for the first time in four months, as a deep plunge in exports offset output which tumbled to near 5-year low, a Reuters survey showed on Friday. nL4N2K92XE

* Dalian's most-active soyoil contract DBYcv1 and its palm oil contract DCPcv1 both gained 0.8%. 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.

* Palm oil may retreat to 3,322 ringgit per tonne, as it failed to break a resistance at 3,422 ringgit, Reuters technical analyst Wang Tao said. TECH/C


MARKET NEWS

* Asian shares hovered near record highs on Monday while oil edged closer to $60 a barrel on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally. MKTS/GLOB

* Oil prices rose on Monday, with Brent futures nearing $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S. economic stimulus measures to boost demand. O/R

DATA/EVENTS AHEAD (GMT)

0700 Germany Industrial Output MM Dec



($1 = 4.0620 ringgit)


(Reporting by Mei Mei Chu; Editing by Amy Caren Daniel)

((Meifong.chu@thomsonreuters.com))

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.  * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils                       OILS/ASIA1 Malaysian palm oil exports           SGSPALM1   CBOT soyoil futures                  0#BO:      CBOT soybean futures                 0#S:       Indian solvent                       SOLVENT01  Dalian Commodity Exchange            DC/MENU   Dalian soyoil futures                0#DBY:   Dalian refined palm oil futures      0#DCP:   Zhengzhou rapeseed oil               0#COI:   European edible oil prices/trades    OILS/E