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VEGOILS-Palm pares losses as crude, rival oils gain

VEGOILS-Palm pares losses as crude, rival oils gain

reuters.com · 12/29/2021 22:16
VEGOILS-Palm pares losses as crude, rival oils gain

- Malaysian palm oil futures pared previous session's losses to gain on Thursday, buoyed by stronger crude and rival edible oils amid expectations for tighter supply.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange rose 21 ringgit, or 0.45%, to 4,716 ringgit ($1,131.34) a tonne during early trade.

It had gained 0.45% in overnight trade.


FUNDAMENTALS

* Traders are awaiting industry estimates for December production, expecting lower output and drawdown on stocks.

* Dalian's most-active soyoil contract DBYcv1 gained 0.2%, while its palm oil contract DCPcv1 rose 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.3%.

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

* Oil prices extended several consecutive days of gains, buoyed by data showing U.S. fuel demand holding up well despite soaring Omicron coronavirus infections and making palm a more attractive option as biodiesel feedstock. O/R

* Palm oil may retest a support at 4,676 ringgit per tonne, a break below which could cause a fall into 4,591-4,625 ringgit range, Reuters technical analyst Wang Tao said. TECH/C


MARKET NEWS

* Asian share markets got off to a listless start on Thursday as the spread of Omicron clouded the last trading day of the year for many exchanges around the globe, while oil was close to finishing 2021 with gains of more than 50%. MKTS/GLOB

DATA/EVENTS

1330 US Initial Jobless Claims Weekly


($1 = 4.1685 ringgit)



(Reporting by Mei Mei Chu;
Editing by Vinay Dwivedi)

((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