VEGOILS-Palm extends rally for second day on stronger crude oil

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, Feb 23 (Reuters) - Malaysian palm oil futures rose on Thursday to extend gains for a second consecutive session, tracking strength in crude oil prices. The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgit, or 1.11%, to 4,192 ringgit ($945.64) in early trade. The contract hit its highest since Jan. 4 in the previous session, before paring some of its gains on profit-booking. FUNDAMENTALS
* Oil prices rose slightly in thin Asian trade on Thursday, pausing from a six-day losing streak fed by mounting concerns that more aggressive interest rate hikes by central banks could pressure economic growth and fuel demand.
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* Malaysia has maintained its March export tax for crude palm oil at 8% and lowered the reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday.
* Dalian's most active soyoil contract lost 0.07%, while its palm oil contract gained 0.44%. Soyoil prices on the Chicago Board of Trade were largely unchanged.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may retest a support at 4,155 ringgit per tonne, a break below which could open the way towards a range of 4,039-4,083 ringgit, Reuters technical analyst Wang Tao said. MARKET NEWS
* Asian stock markets were pinned near seven-week lows on Thursday, while the dollar stood at multi-week peaks, as a run of strong economic data has investors worrying interest rates will need to keep rising and stay high to put the brakes on inflation. DATA/EVENTS (GMT) 1000 EU HICP Final MM, YY Jan 1330 US GDP 2nd Estimate Q4 1330 US Initial Jobless Clm Weekly ($1 = 4.4330 ringgit) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ cpo ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Matthew Chye; Editing by Sonia Cheema)


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