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VEGOILS-Palm oil hits record high on concerns of tight edible oil supply

05/11/2021 23:31
VEGOILS-Palm oil hits record high on concerns of tight edible oil supply

- Malaysian palm oil futures hit a record high of 4,513 ringgit ($1,094.33) a tonne on Wednesday, helped by concerns of tight global edible oil supply and on trader positioning ahead of a key U.S. report for grains and soybeans.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange was up 143 ringgit, or 3.29%, at 4,493 ringgit ($1,089.48) a tonne by 0250 GMT.

The Malaysian bourse will be closed after the midday break for Eid celebration, and will resume trade on May 17.

FUNDAMENTALS

* Traders are expecting the World Agricultural Supply and Demand Estimates report due later in the day to show a supply squeeze until 2022. The U.S. Department of Agriculture will give its first global outlook for grains and soybeans in 2021/22 and update its 2020/21 estimates in the report. nL1N2MX1P2

* Palm oil is being supported by a rally in the global agricultural market, led by Chicago corn and soybean futures, which are trading at multi-year highs.

* The edible oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Dalian's most-active soyoil contract DBYcv1 rose 3%, while its palm oil contract DCPcv1 gained 3%. Soyoil prices on the Chicago Board of Trade BOcv1 were also up 1.3%.

* Palm oil is poised to break a resistance at 4,436 ringgit per tonne and rise into a range of 4,494 ringgit to 4,556 ringgit, Reuters technical analyst Wang Tao said. TECH/C


MARKET NEWS

* Asian shares fell for a second straight session on Wednesday to one-month lows as investors speculated surging commodity prices and growing inflationary pressure in the United States could lead to earlier rate hikes and higher bond yields globally. MKTS/GLOB


DATA/EVENTS

0600 Germany HICP Final MM April

0600 UK GDP Est 3M/3M March

0600 UK GDP Estimate MM, YY March

0600 UK Manufacturing Output MM March

0600 UK GDP Prelim QQ, YY Q1

0645 France CPI (EU Norm) Final MM, YY April

1230 US CPI MM, SA April



($1 = 4.1240 ringgit)


(Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips)

(([email protected]))

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