Palm set for second straight weekly jump on global supply fears
15.04.2022 (www.businesstimes.com.sg) - [KUALA LUMPUR] Malaysian palm oil futures extended gains on Friday (Apr 15), setting them on course for a second consecutive weekly jump, as concerns over tightening global edible oil supplies lingered in the wake of Russia's invasion of Ukraine.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 128 ringgit, or 2.04 per cent, to 6,416 ringgit (S$2,058.25) a tonne during early trade, its highest since Mar 14.
For the week, palm is up 8.4 per cent so far.
Italian confectionary giant Ferrero will stop sourcing palm oil from Sime Darby Plantation after the US customs service found the Malaysian planter used forced labour, in a reputational blow for the palm producer and for Malaysia.
Argentinian truckers agreed on Thursday night to call off a strike that paralysed soy and grains transport in the country since Monday, the transport ministry said.
Dalian's most-active soyoil contract rose 0.6 per cent, while its palm oil contract gained 1.6 per cent. Soyoil prices on the Chicago Board of Trade were up 1 per cent.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices settled higher on Thursday as investors covered short positions ahead of the long weekend and on news that the European Union might phase in a ban on Russian oil imports.
Stronger crude makes palm a more attractive option for biodiesel feedstock.
Wall Street stocks finished lower while bond yields and the dollar rose on Thursday as investors worried about the potential for aggressive US policy tightening as other central banks around the world moved to reduce support. REUTERS