KUALA LUMPUR, Could 12 (Reuters) – Malaysian palm oil futures hit a report excessive of 4,513 ringgit ($1,094.33) a tonne on Wednesday, helped by considerations of tight world edible oil provide and on dealer positioning forward of a key U.S. report for grains and soybeans.
The benchmark palm oil contract FCPOc3 for July supply on the Bursa Malaysia Derivatives Trade was up 143 ringgit, or 3.29%, at 4,493 ringgit ($1,089.48) a tonne by 0250 GMT.
The Malaysian bourse shall be closed after the noon break for Eid celebration, and can resume commerce on Could 17.
FUNDAMENTALS
* Merchants predict the World Agricultural Provide and Demand Estimates report due later within the day to indicate a provide squeeze till 2022. The U.S. Division of Agriculture will give its first world outlook for grains and soybeans in 2021/22 and replace its 2020/21 estimates within the report.
* Palm oil is being supported by a rally within the world agricultural market, led by Chicago corn and soybean futures, that are buying and selling at multi-year highs.
* The edible oil is affected by value actions in associated oils as they compete for a share within the world vegetable oils market.
* Dalian’s most-active soyoil contract DBYcv1 rose 3%, whereas its palm oil contract DCPcv1 gained 3%. Soyoil costs on the Chicago Board of Commerce BOcv1 have been additionally up 1.3%.
* Palm oil is poised to interrupt a resistance at 4,436 ringgit per tonne and rise into a spread of 4,494 ringgit to 4,556 ringgit, Reuters technical analyst Wang Tao stated. TECH/C
MARKET NEWS
* Asian shares fell for a second straight session on Wednesday to one-month lows as traders speculated surging commodity costs and rising inflationary strain in the USA might result in earlier fee hikes and better bond yields globally. MKTS/GLOB
DATA/EVENTS
0600 Germany HICP Remaining MM April
0600 UK GDP Est 3M/3M March
0600 UK GDP Estimate MM, YY March
0600 UK Manufacturing Output MM March
0600 UK GDP Prelim QQ, YY Q1
0645 France CPI (EU Norm) Remaining MM, YY April
1230 US CPI MM, SA April
($1 = 4.1240 ringgit)
p1https://tmsnrt.rs/3uBs0x0
(Reporting by Mei Mei Chu; Enhancing by Sherry Jacob-Phillips)
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