Palm oil prices jump to all-time high as Russia-Ukraine tension worsens

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange rose 101 ringgit, or 1.78%, to 5,776 ringgit ($1,380.17) a tonne in early trade.

Malaysian palm oil futures scaled an all-time high on Tuesday, extending gains to a fourth session, as threats of a Russia-Ukraine war lifted crude prices and boosted the appeal of the tropical oil as a more attractive biodiesel feedstock option.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange rose 101 ringgit, or 1.78%, to 5,776 ringgit ($1,380.17) a tonne in early trade.

The spot contract climbed to an all-time high of 6,272 ringgit as investors priced in tightening supply following an upsurge in early February exports.

FUNDAMENTALS

* Oil prices jumped more than $2 to a fresh seven-year high after Moscow ordered troops into two breakaway regions in eastern Ukraine, escalating a crisis that western leaders have warned could spark a war. O/R

* Tensions between Russia and Ukraine have also stoked worries over sunflower oil shipments from the Black Sea region, Refinitiv Agriculture Research said in a note on Monday.

* Dalian’s most-active soyoil contract DBYcv1 rose 1.6%, while its palm oil contract DCPcv1 jumped 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 1.5%.

* Exports of Malaysian palm oil products for Feb. 1-20 rose 30.5% from the same period in January, cargo surveyor Societe Generale de Surveillance said.

* Palm oil may test a resistance zone of 5,794-5,868 ringgit per tonne, a break above which could lead to a gain to 5,986 ringgit.

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Tags: Ukraine, Russia, export, soyoil, palm oil, futures, Malaysia Derivatives Exchange