VEGOILS-Palm oil rallies for ninth day to hit 13-yr peak on crude, rivals strength

Palm is set for its longest consecutive daily rising streak in nearly 19 years


Malaysian palm oil futures hit a more than 13-year high on Monday, as the market rallied for a ninth straight session, lifted by a jump in crude and rival edible oils due to tightening global supplies.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 17 ringgit, or 0.41%, to 4,142 ringgit ($1,007.30) a tonne during early trade, its highest since March 4, 2008.

Palm is also set for its longest consecutive daily rising streak in nearly 19 years.

Investors are now awaiting cargo surveyors to announce March 1-15 export data but shipments are expected to remain slow amid lower stockpile and output.

FUNDAMENTALS

* India’s palm oil imports fell 27% in February from a year earlier to their lowest in nine months, a leading trade body said on Friday, reflecting a slowdown in domestic demand.

* Dalian’s most-active soyoil contract rose 0.4%, while its palm oil contract gained 0.4%. Soyoil prices on the Chicago Board of Trade were up 0.3%.

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

* Oil prices edged up, with Brent drifting near $70 a barrel, making palm a more attractive option for biodiesel feedstock.

* Palm oil may retreat into a range of 4,008 ringgit to 4,048 ringgit per tonne before resuming its uptrend, Reuters technical analyst Wang Tao said.


Source: today online, 2021-03-15.


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