KUALA LUMPUR, Dec 21 (Reuters) – Malaysian palm oil futures rose on Wednesday, tracking overnight gains in rival soyoil, with concerns over flood-related supply disruptions in the world’s second-largest producer also offering support.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 75 ringgit, or 1.94%, to 3,944 ringgit ($889.29) a tonne during early trade.
FUNDAMENTALS
* More than 70,000 people have been displaced this week as flooding worsens across several states in Malaysia, the world’s second-largest palm oil producer, with heavy rains expected to persist until the year-end. * Exports from Malaysia during Dec 1-20 fell 4% from the previous month to 952,592 tonnes, cargo surveyor ITS said on Wednesday.
* Dalian’s most-active soyoil contract DBYcv1 fell 0.5% while its palm oil contract DCPcv1 eased 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 rose for a third day, after rising 2.2% overnight.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices rose as U.S. crude stocks were seen falling last week, making palm oil a more attractive option for biofuel feedstock. O/R
* Palm oil looks neutral in a range of 3,861-3,945 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* U.S. stocks closed higher on Tuesday in a modest reversal of a four-day sell-off, but the greenback lost altitude and bond yields jumped in the wake of an unexpected policy pivot from the Bank of Japan (BOJ). MKTS/GLOB
DATA/EVENTS (GMT)
0500 Japan Chain Store Sales YY Nov
1500 US Consumer Confidence Dec
1500 US Existing Homes Sales Nov
($1 = 4.4350 ringgit)
(Reporting by Mei Mei Chu; editing by Uttaresh.V)
((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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