KUALA LUMPUR, Jan 4 (Reuters) – Malaysian palm oil futures extended gains for the third straight session on Tuesday, hovering near a more than three-week high, as worsening floods added to worries over a larger-than-expected decline in production.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 5 ringgit, or 0.1%, to 4,862 ringgit ($1,163.16) a tonne during early trade.
It fell 0.66% during overnight trade, after starting the year up 3.4%.
FUNDAMENTALS
* Supplies remain tight due to wet weather in Peninsular Malaysia and Sabah amid the Northeast monsoon season that has led to widespread flooding, with industry data estimating output 8.5% lower for December versus November, according to Refinitiv Commodities Research.
* Persistently high palm oil prices and renewed lockdowns to combat the Omicron coronavirus variant have hurt demand, Refinitiv said.
* Exports of Malaysian palm oil products for December fell 5.3% from November, cargo surveyor Intertek Testing Services said on Friday.
* Dalian’s most-active soyoil contract DBYcv1 gained 0.8%, while its palm oil contract DCPcv1 rose 1.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.4%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may retest a resistance at 4,873 ringgit per tonne, a break above which could lead to a gain to 4,948 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian stocks were firmer on Tuesday following Wall Street’s record highs on its first trading day of 2022, despite worries that the Omicron variant could put the brakes on global economic recovery. MKTS/GLOB
DATA/EVENTS (GMT)
0745 France CPI (EU Norm) Prelim YY Dec
0855 Germany Unemployment Rate, Chng SA Dec
0930 UK Markit/CIPS Mfg PMI Final Dec
1500 US ISM Manufacturing PMI Dec]
($1 = 4.1800 ringgit)
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(Reporting by Mei Mei Chu)
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