VEGOILS-Palm slips as Russian-Ukrainian talks raise hopes for ceasefire

Band Mei Mei Chu

KUALA LUMPUR, March 30 (Reuters)Malaysian palm oil futures finished lower on Wednesday, erasing gains made in previous session as signs of progress in Russian-Ukrainian peace talks heightened hopes of the end of a conflict that has shaken the world supply of raw materials, including edible oils.

The reference palm oil contract FCPOc3 for delivery in June on the Bursa Malaysia Derivatives Exchange closed 93 ringgitor 1.54%, at 5,927 ringgits ($1,410.18) per ton.

Crude and soybean oil prices fell overnight after Russia promised to scale back military operations around kyiv and another city.

However, Ukraine reacted with skepticism as some Western countries expected Moscow to step up its offensive in other parts of the country.

“Uncertainty surrounding the news of ceasefire talks between Ukraine and Russia made the market nervous today,” said Paramalingam Supramaniam, director of Selangor-based brokerage Pelindung Bestari.

“Buyers only buy at dips, which explains the predominance of a defensive tone in our market.”

Indonesia’s top producer set its benchmark crude palm oil price for April at $1,787.5 a ton, down from $1,432.24 a ton in March, according to a Commerce Ministry regulation.

Indonesia’s tax collection on palm oil exports in 2022 is estimated at 68.18 trillion rupiah ($4.76 billion), down from 71.6 trillion rupiah last year, a said Eddy Abdurrachman, director of the palm oil fund agency.

In Related Oils, Chicago Board of Trade Soybean Oil Prices BOcv1 were up 00.6%. The most active soybean oil contract in Dalian DBYcv1 fell 0.4%, while its palm oil contract DCPcv1 slipped 0.4%.

Palm oil is affected by fluctuations in related oil prices as they compete for a share of the global vegetable oil market.

($1 = 4.2030 ringgit)

(Reporting by Mei Mei Chu; Editing by Rashmi Aich, Subhranshu Sahu and Louise Heavens)

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