VEGOILS-Palm jumps 3% on stronger crude and falling inventory outlook
KUALA LUMPUR, March 7 (Reuters) – Malaysian palm oil futures climbed 3% on Monday, recouping some of the steep losses of the previous session, as oil prices soared and surveys showed a collapse in stocks of end of February.
The reference palm oil contract FCPOc3 for the month of May, delivery on the Bursa Malaysia Derivatives Exchange rose 191 ringgits, or 3.04%, to 6,467 ringgits ($1,548.06) per ton, after jumping 4.7% at the opening bell. Palm oil prices fell 7.8% on Friday.
* 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 the Production fell for a fourth consecutive month while exports surged, a Reuters survey showed on Friday.
* Oil prices soared more than 6% on Monday to their highest since 2008 after the United States and European allies consider an import ban on Russian oil amid delays in the potential return of Iranian crude in global markets fueled fears of tight supplies. WHERE
* Stronger crude oil futures make palm a more attractive option for the biodiesel feedstock.
* The Russian-Ukrainian war has halted Ukrainian sunflower oil shipments to the EU which usually amount to around 200,000 tonnes a month, vegetable oil industry group FEDIOL said on Friday, adding that the EU was facing a deficit.
* The most active soybean oil contract in Dalian DBYcv1 fell 0.2%, while its palm oil contract DCPcv1 down 1.2%. Chicago Board of Trade Soybean Oil Price BOcv1 were up 2%.
* Palm oil is impacted by related oil price movements as they compete for share of the global vegetable oil market.
* Oil prices soared and stocks fell in hectic trading as the risk of a US and European ban on Russian products and delays in Iranian talks sparked what was shaping up to be a shock major stagflationary for world markets. MKTS/GLOB
0300 China Exports, Imports YY Feb
0300 China’s Trade Balance Feb.
0700 UK House prices in Halifax MM Feb
0700 Germany Industrial Controls MM Jan
0745 France Reserve assets Total Feb.
($1 = 4.1775 ringgit)
(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)
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