VEGOILS-Palm oil gains 2%, lingers at over 8-yr high as supply tightens

  • Reuters
  • Commodities News
VEGOILS-Palm oil gains 2%, lingers at over 8-yr high as supply tightens

KUALA LUMPUR, Nov 11 (Reuters) - Malaysian palm oil futures rose on Wednesday, lingering at over eight-year highs hit in the previous session, as October stockpiles slumped and rivals Dalian and soybean oil firmed.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange rose 67 ringgit, or 2.1%, to 3,326 ringgit ($807.28) a tonne during early trade.

Palm is up for a third straight day to trade at its highest since May 2012.

FUNDAMENTALS

* Malaysia's October palm oil inventories slumped to their lowest since June 2017, down 8.6% on-month, on lower production, according to the Malaysian Palm Oil Board on Tuesday. Export during Nov. 1-10 fell between 17% and 19% with shipments to India contracting as pre-Diwali seasonal buying ends, cargo surveyors data showed. Dalian's most-active soyoil contract DBYc3 rose 1.9%, while its palm oil contract DCPc3 gained 2.6%. Soyoil prices on the Chicago Board of Trade BOc1 were up 1.3%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Palm oil is poised to break a resistance at 3,261 ringgit per tonne, and rise into a range of 3,300-3,348 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Stock markets gained on Wednesday, as news of a working COVID-19 vaccine seemed to inoculate investors against worry about surging infections in Europe and the United States, while the kiwi rose as traders thought the central bank sounded upbeat. MKTS/GLOB

DATA/EVENTS

No major data/events expected on Wednesday

($1 = 4.1200 ringgit)

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