Nature

VEGOILS-Palm gains 4% as looming sanctions raise concerns over global supply


Band Mei Mei Chu

KUALA LUMPUR, April 5 (Reuters)Malaysian palm oil futures jumped 4.5% on Tuesday, their biggest percentage rise in nearly a month, as jitters over the fallout from the Russia-Ukraine crisis sparked concerns about the global supply of vegetable oils and other raw materials.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange climbed 218 ringgits, or 3.83%, to 5,910 ringgits ($1,385.71) a tonne.

Oil futures extended gains as the United States and Europe forecast new sanctions to punish Moscow for alleged war crimes by Russian troops in Ukraine, adding to concerns over supply disruptions and making palm a more attractive option for biodiesel feedstock. WHERE

Chicago soybean futures also rose on global supply uncertainty, after consultancy Strategie Grains said on Monday that a halt to Ukrainian vegetable oil production and exports could come. continue until June.

This has raised hopes that European countries will turn to palm oil as an alternative to sunflower and rapeseed oils.

“Rising inflation and the ongoing war (in Ukraine) have not brought commodity prices to record highs, which leaves room for further upward movement, especially in the sectors of energy and agricultural products,” said Mohsin Mohammad, director of Selangor-based cooking oil. exporter Sarafiah Natural Resources.

In Malaysia, exports from April 1-5 fell 45% to 107,980 tonnes from the same week in March, cargo inspector Intertek Testing Services said.

Palm oil demand is expected to increase in May and June when prices fall, but this could lead to a shortfall in destinations due to the month of Ramadan, he said.

Production in Malaysia is expected to resume in the coming months as the weather improves.

Rapeseed growers in India are holding back from selling to oilseed processors despite a record harvest in hopes that prices will rise further, which could force the world’s biggest importer of edible oils to increase oil imports palm and soybean oil.

Chicago Board of Trade Soybean Oil Price BOcv1 rose 0.9% after a 1.6% overnight gain. The Dalian Stock Exchange was closed for a public holiday.

($1 = 4.2130 ringgit)

(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu and Amy Caren Daniel)

(([email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


nasdaq

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button