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KUALA LUMPUR, Dec 27 (Reuters) – Malaysian palm oil futures surged more than 6% on Tuesday, its biggest one-day jump in three months, on demand optimism after key market China said it would further ease border controls for inbound travellers.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange jumped 248 ringgit, or 6.48%, to 4,078 ringgit ($922.62) a tonne during early trade, hitting its highest since Dec. 7.
FUNDAMENTALS
* China will stop requiring inbound travellers to go into quarantine starting from Jan. 8, the National Health Commission said on Monday in a major step towards easing curbs on its borders, which have been largely shut since 2020.
* Exports of Malaysian palm oil products for Dec. 1-25 fell 0.8% to 1,262,147 tonnes from Nov. 1-25, cargo surveyor Intertek Testing Services said on Monday.
* Dalian’s most-active soyoil contract DBYcv1 gained 4.1%, while its palm oil contract DCPcv1 rose 4.9%. The Chicago Board of Trade BOcv1 was closed.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Malaysia, the world’s second-largest palm oil producer, on Friday accused the European Union (EU) of blocking market access of the edible oil with a new law that prevents the sale of commodities linked to deforestation in the 27-country bloc.
MARKET NEWS
* Stock markets gained while the U.S. dollar softened on Tuesday after China said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID-19. MKTS/GLOB
DATA/EVENTS (GMT)
1100 France Unemp Class-A SA Nov ($1 = 4.4200 ringgit)
(Reporting by Mei Mei Chu; Editing by Savio D’Souza)
((Meifong.chu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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