VEGOILS-Palm opens higher on stronger rival edible oils, crude oil prices

KUALA LUMPUR, Jan 20 (Reuters) - Malaysian palm oil futures rose on Tuesday, after falling in the previous session, buoyed by stronger rival edible oils and crude oil prices, while traders await export data for further cues.

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.74%, to 4,097 ringgit ($1,011.60) a metric ton in early trade.

FUNDAMENTALS

Dalian's most-active soyoil contract DBYcv1 rose 0.53%, while its palm oil contract DCPcv1 added 1.06%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.27%.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices rose after better-than-expected economic growth data from China lifted demand optimism, with markets also watching President Donald Trump's threats of increased U.S. tariffs on European nations over his desire to buy Greenland. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Cargo surveyors will release their export estimates for January 1-20 later in the day.

The ringgit MYR=, palm's currency of trade, strengthened 0.05% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

Malaysian crude palm oil futures are expected to average slightly lower in 2026 than last year, with stronger supply from major producers and subdued biofuel demand putting downward pressure on prices, a Reuters poll showed.

A Chinese importer bought a cargo of Canadian canola shortly after Canadian Prime Minister Mark Carney's visit to Beijing last week, trader sources said, boosting prospects for Canadian farmers and potentially undercutting sales by rival supplier Australia.

Palm oil may test resistance at 4,108 ringgit per metric ton, a break above which could lead to a gain into the 4,125 ringgit to 4,149 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

Asian stocks fell on Tuesday, while the dollar remained under pressure and the U.S. Treasury yields climbed to their highest level in more than four months, as a resurgence of trade-war concerns hit risk sentiment and sparked selling in U.S. assets. MKTS/GLOB

DATA/EVENTS

0700 UK ILO Unemployment Rate Nov

0700 UK HMRC Payrolls Change Dec

1000 Germany ZEW Economic Sentiment Jan

1000 Germany ZEW Current Conditions Jan

($1 = 4.0500 ringgit)