VEGOILS Palm oil rises tracking crude, rival oils

  • 12/21/2021
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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 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 gained 0.1%, while its palm oil contract gained 0.71%. Soyoil prices on the Chicago Board of Trade 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. * 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. 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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