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SINGAPORE, April 3 (Reuters) – Malaysian palm oil futures rose 2.5% on Monday with prices climbing to their highest in two weeks, underpinned by a rally in the crude oil market.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange added 94 ringgit, or 2.5%, to 3,855 ringgit ($872.17) a tonne in early trading. The market hit its highest since March 20 at 3,888 ringgit a tonne earlier in the session.
Oil prices jumped about $5 a barrel in Monday’s open, jolted by a surprise announcement by OPEC+ to cut production further to support market stability. O/R
Palm oil often takes cues from energy markets with the growing use of the vegetable oil in making biofuels that compete with petroleum products.
Dalian’s most-active soyoil contract DBYcv1rose 2.1%, while its palm oil contract DCPcv1 advanced 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 was up 2.2%.
Malaysia said on Sunday it has signed a memorandum of understanding with a China government-backed trade association to enhance palm oil trading and cooperation.
Palm oil FCPOc3 still targets 3,853 ringgit per tonne, as it has broken a resistance at 3,718 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.4200 ringgit)
(Reporting by Carman Chew; Editing by Naveen Thukral and Dhanya Ann Thoppil)
((carman.chew@thomsonreuters.com; +6582011860))
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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