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VEGOILS-Palm extends gains for third day on soy oil strength

VEGOILS-Palm extends gains for third day on soy oil strength

Reuters · 07/28/2022 06:44
VEGOILS-Palm extends gains for third day on soy oil strength

Updates prices

By Fransiska Nangoy

- Malaysian palm oil futures posted gains for a third straight session on Thursday as soy oil climbed on concerns over tight soybean harvest and market participants resumed bargain-hunting.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange rose 3.53% to close the afternoon session at 3,961 ringgit ($889.91) per tonne. It rose as much as 5.23% earlier in the day to touch its highest in a week.

Palm oil was helped by strength in rival vegetable oils on Thursday, a trader in Kuala Lumpur said, adding that palm oil "remains very cheap" compared to soyoil.

The contract has fallen sharply over the past two months as rival Indonesia resumed exports. So far in July, it has lost 19% after posting a 22% decline in June.

On Thursday, Dalian's most-active soyoil contract DBYv1 rose 5.15% to its highest since July 1, while its palm oil contract DCPv1 gained 6.58%. Soyoil prices on the Chicago Board of Trade BOc2 rose 2.39%.

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

Chicago soybean futures rose for a fifth consecutive session on Thursday to their highest in more than two weeks, as hot and dry weather conditions expected in parts of the U.S. Midwest threaten to reduce yields. GRA/

Meanwhile, crude palm oil exports from top producer Indonesia are picking up pace, reaching 100,000 tonnes to 140,000 tonnes per day after the government waived its export levy to ease a supply glut, a senior Finance Ministry official said on Wednesday.

Palm oil may test a resistance of 4,085 ringgit per tonne, a break above which could lead to a gain to 4,269 ringgit, Reuters technical analyst Wang Tao said. TECH/C


($1 = 4.4510 ringgit)


(Reporting by Fransiska Nangoy; Editing by Uttaresh.V, Subhranshu Sahu and Shounak Dasgupta)

((Fransiska.Nangoy@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  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