JAKARTA: Malaysian palm oil futures hit a record high on Monday, rising for a fourth straight session, buoyed by a rally in crude oil prices and talks of export restrictions by top producer Indonesia.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange was up 0.94% at 5,372 ringgit ($1,284.25) a tonne by 0238 GMT, after scaling an all-time high of 5,380 ringgit earlier in the day.
The contract posted a fifth straight weekly gain last week amid lingering output concerns and talks of export control by Indonesia.
Fundamentals
Indonesia starting Jan. 24 required palm oil exporters to get shipments approvals from the trade ministry. Meanwhile, the government is also discussing a plan to limit exports of the vegetable oil, an industry group said.
Indonesia's plan to limit palm oil exports is likely to make leading importer India shift to substitute soy and sunflower oils, potentially capping the market's rally, industry officials and analysts said.
Oil prices jumped on Monday as geopolitical tensions in Eastern Europe and the Middle East heightened concerns about an already tight supply outlook, while OPEC and its allies continued to struggle to raise their output.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Dalian's most-active soyoil contract rose 0.84%, while its palm oil contract gained 1.14%. Soyoil prices on the Chicago Board of Trade were up 0.16%.
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 break a resistance at 5,366 ringgit per tonne and rise towards 5,484 ringgit, Reuters technical analyst Wang Tao said.
Market News
CBOT corn futures rose to their highest in seven months on Friday as concerns about production in South America spurred demand for US supplies, traders said.
Asian share markets slipped on Monday with the Federal Reserve expected to confirm it will soon start draining the massive liquidity that has fuelled the huge gains in growth stocks in recent years.
Comments
Comments are closed.