JAKARTA, Jan 27 (Reuters) – Malaysian palm oil futures extended its gains to a third session on Thursday, after notching a new all-time high in overnight trade amid a rally in energy and grain markets.
The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 1.50% to 5,409 ringgit ($1,287.55) per tonne in early trade.
The contract recorded 1.78% gain overnight as crude oil prices jumped on tight supply and rising geopolitical concern, but palm may see some profit taking as rallies in rival oils were seen easing on Thursday.
FUNDAMENTALS
* U.S. soybean futures hit their highest in seven months on Wednesday on technical buying and as soyoil futures rallied with energy markets and historically high palm oil prices. GRA/
* Dalian’s most-active soyoil contract DBYcv1 rose 1.88%, while its palm oil contract DCPcv1 gained 2.32%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.61%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Oil prices fell as investors cashed in profits from the 2% gains in the previous session after the U.S. Federal Reserve indicated an interest rate hike in March, leading to a technical correction in surging energy markets. O/R
* Crude oil prices affects palm oil as it is an option for biodiesel feedstock.
* Palm oil may test a resistance at 5,484 ringgit per tonne, a break above could lead to a gain into 5,558-5,608 ringgit range, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Asian shares fell to their lowest in more than 14 months, short-term U.S. yields rose to 23-month highs and the dollar strengthened on Thursday after the Federal Reserve’s chairman signaled plans to steadily tighten policy. MKTS/GLOB
DATA/EVENTS
1330 US Durable Goods Dec
1330 US GDP Advance Q4
1330 US Initial Jobless Clm Weekly
($1 = 4.2010 ringgit)
(Reporting by Fransiska Nangoy; Editing by Rashmi Aich)
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