Palm rises as crude jumps overnight, other commodities recover

Palm oil futures fell on Monday despite a big rise in June exports, as fears of a second wave of coronavirus infections pressured crude oil and global markets.

Agencies
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysian palm oil futures rose 2% on Tuesday, as oil prices gained overnight and a recovery in commodities and equities in the region boosted sentiment.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange climbed 2.2% to 2,344 ringgit ($549.59) a tonne during 0303 GMT.

Palm oil futures fell on Monday despite a big rise in June exports, as fears of a second wave of coronavirus infections pressured crude oil and global markets.


FUNDAMENTALS

Oil prices rose more than 2% on Monday after OPEC+ members were seen complying with a production cut deal.

However, crude prices dipped early on Tuesday on jitters that a rise in coronavirus infections around the world would hurt fuel demand.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract gained 0.04% and its palm oil contract rose 0.73%. Soyoil prices on the Chicago Board of Trade climbed 1.08%.

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 retest a support at 2,308 ringgit per tonne, a break below which could cause a fall to 2,237 ringgit, Reuters technical analyst Wang Tao said.
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MARKET NEWS

Asian shares and Wall Street futures rallied on Tuesday as the formal start of the Federal Reserve's corporate bond buying programme boosted global investor sentiment and calmed earlier worries about a second wave of coronavirus infections.
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DATA/EVENTS (GMT) 0600 Germany HICP Final YY May 0600 UK Claimant Count Unem Chng May 0600 UK ILO Unemployment Rate April 0900 Germany Zew Economic Sentiment June 0900 Germany Zew Current Conditions June 1230 US Retail Sales MM May 1315 US Industrial Production MM May ($1 = 4.2650 ringgit)

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