JAKARTA, Oct 25 (Reuters) – Malaysian palm oil futures rebounded in early trade on Monday, as supply constraints due to the rainy season and strength in rival oils supported the market.
The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 0.93% to 4,970 ringgit ($1,198.17) per tonne, recovering from its worst week in two months.
FUNDAMENTALS
* Prices are seen rising as the rainy season and coronavirus-linked labour shortage are slowing output in Malaysia, a trader said.
* Dalian’s palm oil contract DCPcv1 rose 0.46%, while the most-active soyoil contract DBYcv1 gained 0.12%. On the Chicago Board of Trade BOcv1, soy oil prices were up 0.66%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
* Asian shares started steady ahead of a week packed with major quarterly earnings announcements, while the dollar hovered near October lows after three weeks of risk-friendly sentiment hurt safe-haven currencies. MKTS/GLOB
* Oil prices rose, extending pre-weekend gains, with U.S. crude hitting a seven-year high as global supply remained tight amid strong demand worldwide as economies recover from coronavirus pandemic-induced slumps. O/R
DATA/EVENTS
0800 Germany Ifo Business Climate New, Oct
0800 Germany Ifo Curr Conditions New, Oct
0800 Germany Ifo Expectations New, Oct
($1 = 4.1480 ringgit)
(Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu)
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