VEGOILS-Palm tracks soyoil gains, hits near 10-year high

  • Reuters
  • Commodities News
VEGOILS-Palm tracks soyoil gains, hits near 10-year high

(Recasts with closing share price)

By Liz Lee

KUALA LUMPUR, Jan 4 (Reuters) - Malaysian palm oil futures climbed on Monday, as rival soyoil gained on concerns over disruptions to Argentina supply and dry weather conditions in South America.

The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange rose 124 ringgit, or 3.44% to 3,724 ringgit ($930.07) a tonne.

The contract gained for a fourth straight session, trading at its highest level since February 2011.

Palm marked its second year of growth in 2020 last week, as demand remained firm amid tightening supplies due to unfavourable weather and infrastructure issues.

Soyoil rose after grain inspectors in Argentina said they would continue to strike over the weekend after failing to agree on a wage deal, while dry weather in South America continued to support soybean prices. Kuala Lumpur-based trader said palm oil supplies could also be affected by potential floods in Indonesia and Malaysia.

Dalian's soyoil contract DBYc3 rose 1.24%, and its palm oil contract DCPc3 climbed 0.92%. Soyoil prices on the Chicago Board of Trade BOc1 were up at 1.15%.

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

Palm oil may rise to 3,757 ringgit per tonne after breaking a resistance at 3,679 ringgit, Reuters market analyst for commodities and energy technicals Wang Tao said. TECH/C ($1 = 4.0040 ringgit)

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