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KUALA LUMPUR, March 2 (Reuters) – Malaysian palm oil futures rose on Thursday for a second day, buoyed by a weaker ringgit and as traders assessed India’s removal of duty-free import quotas for sunflower oil.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange gained 51 ringgit, or 1.22%, to 4,233 ringgit ($946.56) a tonne during early trade.
FUNDAMENTALS
* The ringgit MYR=, palm’s currency of trade, fell 0.07% against the dollar, making the commodity cheaper for holders of foreign currency.
* India has decided to scrap a duty-free imports quota of 2 million tonnes of crude sunflower oil for the next fiscal starting from April 1, the government said on Wednesday, as the world’s biggest importer of vegetable oils tries to support local oilseed farmers.
* More than 27,000 flood victims across Malaysia have been evacuated as months-long heavy rains continue to hit the country, state media Bernama reported. Flooding will disrupt harvesting activities and supply lines, affecting output in the world’s second largest producer.
* Dalian’s most-active soyoil contract DBYcv1 gained 0.6%, while its palm oil contract DCPcv1 rose 1.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.5%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
* A rally in Asian shares sputtered on Thursday, pressured by a pullback in Chinese stocks and higher U.S. yields amid fears that global central banks would keep raising interest rates to combat sticky inflation. MKTS/GLOB
DATA/EVENTS (GMT)
1000 EU HICP Flash YY Feb
1000 EU HICP-X F, E, A&T Flash YY, MM Feb
1000 EU Unemployment Rate Jan
1330 US Initial Jobless Clm Weekly
($1 = 4.4720 ringgit)
(Reporting by Mei Mei Chu;)
((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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