JAKARTA, Dec 21 (Reuters) – Malaysian palm oil futures rose on Tuesday tracking crude and rival vegetable oils higher, while expectations of a supply slowdown also provided some support.
The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange gained 2.24% to 4,391 ringgit ($1,041.51) during early trade.
It fell 2.56% on Monday, but rebounded by 0.75% during the overnight session.
FUNDAMENTALS
* Exports of Malaysian palm oil products for Dec. 1-20 fell 5.1% from the same period in November, cargo surveyor Intertek Testing Services said on Monday, while independent inspection firm AmSpec Agri Malaysia said exports fell 6.6%.
* Malaysia keeps January crude palm oil export duty at 8%.
* Dalian’s soyoil contract for May delivery DBYv1 gained 0.1%, while its palm oil contract DCPv1 gained 0.71%. Soyoil prices on the Chicago Board of Trade BOc2 rebounded by 1.38%.
* 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 higher on Tuesday, though investors remained worried about the rapid spread of the Omicron coronavirus variant globally, prompting countries to consider more restrictions potentially denting fuel demand. O/R
* Stronger crude oil futures typically make palm a more attractive option for biodiesel feedstock.
* Palm oil may bounce into a range of 4,434-4,480 ringgit per tonne, following its stabilisation around 4,298 ringgit, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian stocks rose on Tuesday, shrugging off a bruising Wall Street session, as Chinese markets cheered Beijing’s push to help troubled property firms, although surging cases of the Omicron variant persist as a worry for investors. MKTS/GLOB
DATA/EVENTS
1500 EU Consumer Confidence Flash Dec
2350 Japan Bank of Japan releases minutes of Oct. 27-28 monetary policy meeting
($1 = 4.2160 ringgit)
(Reporting by Fransiska Nangoy; Editing by Shounak Dasgupta)
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