Band Mei Mei Chu
KUALA LUMPUR, March 7 (Reuters) – Malaysian palm oil futures rose on Monday, rebounding from steep losses in the previous session as oil prices soared and surveys showed a late-February collapse in stocks.
The reference palm oil contract FCPOc3 for the month of May, delivery on the Bursa Malaysia Derivatives Exchange increased by 169 ringgits, or 2.69%, to 6,445 ringgits ($1,543.34) per ton at the midday break.
The contract had jumped 4.7% at the opening bell.
“Palm oil prices are generally trading at an all-time high this month and a downward correction from these levels is most likely due to disruption in demand from destination markets,” Anilkumar said. Bagani, head of research at Sunvin, a Mumbai-based vegetable oil broker. Group.
Oilseeds are struggling with cutbacks in soybean and rapeseed crops in South America and Canada, while solar oil struggles to keep pace with exports amid Ukraine’s invasion by Russia, he said.
The invasion has halted Ukrainian sunflower oil shipments to the EU, which typically amount to around 200,000 tonnes a month, vegetable oil industry group FEDIOL said on Friday, adding that the EU faces a shortfall .
Malaysia’s palm oil stock at the end of February probably fell 11.4% from the previous month to 1.38 million tonnes, its lowest level in more than 10 months, as production fell for a fourth straight month as exports surged, a Reuters survey showed on Friday.
Dalian’s most active soybean oil contract DBYcv1 fell 1.2%, while its palm oil contract DCPcv1 decreased by 2%. Chicago Board of Trade Soybean Oil Price BOcv1 were up 2%.
Oil prices soared more than 6% to their highest level since 2008 after the United States and its European allies consider an import ban on Russian oil, while delays in the potential return of Iranian crude in world markets fueled fears of tighter supply. WHERE
Stronger crude oil futures make palm a more attractive option for the biodiesel feedstock.
($1 = 4.1760 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)
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