Business

VEGOILS-Palm records biggest weekly gain in more than 6 months


Band Mei Mei Chu

KUALA LUMPUR, April 15 (Reuters)Malaysian palm oil futures closed at a one-month high on Friday and recorded their biggest weekly jump in more than six months, as uncertainties over the global supply of edible oil persisted at the aftermath of the war in Ukraine.

The reference palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange rose 169 ringgit, or 2.69%, to 6,457 ringgit ($1,525.40) a tonne, its highest close since March 11.

For the week, the palm climbed 9%, its biggest jump since Oct. 8, 2021. The contract recorded its second straight weekly jump.

The market also followed the strength of Dalian oils, and buying was strong as the April spot contract expires, a Kuala Lumpur-based trader said.

“The May and June contracts went up as they were trading at a huge discount,” he said.

Limiting the gains, however, exports of Malaysian palm oil products from April 1-15 fell 19% to 23% from the same period in March, cargo inspectors said.

Meanwhile, Italian confectionery giant Ferrero and global commodities trader Cargill have stopped sourcing palm oil from Sime Darby Plantation. SIPL.KL after US Customs discovered the Malaysian planter had used forced labor.

Among other related oils, soybean prices have been inflated by fears that a strike by Argentinian truckers this week could cripple exports from the world’s top shipper of processed soybeans, although the Department of Transport said truckers agreed on Thursday. evening to put an end to the demonstration.

Chicago Board of Trade Soybean Oil Price BOcv1 increased by 1.1%. Dalian’s most active soybean oil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 gained 2.9%.

Oil prices stabilized on Thursday as investors hedged short positions ahead of the long weekend and on news that the European Union could phase out Russian oil imports, making the palm a more attractive option for the raw material for biodiesel. OR

($1 = 4.2330 ringgit)

(Reporting by Mei Mei Chu; Editing by Uttaresh.V and Subhranshu Sahu)

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