JAKARTA: Malaysian palm oil futures climbed higher on Monday as stronger rival oils helped boost prices, but smaller-than-expected export volumes and higher output estimates in certain regions capped gains.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 0.47% to 4,240 ringgit ($899.07) by the afternoon closing.
It rose as much as 1.89% earlier in the session before paring some of its gains.
The contract rose to track Chicago soybean oil and Dalian’s palm oil contract’s earlier gains, but a high production figure from the Southern Peninsular Palm Oil Millers Association (SPPOMA) weighed on sentiment, a Kuala Lumpur-based trader said.
The SPPOMA estimated production in March 1-15 jumped 38.8% from the same period last month, traders said.
The export of Malaysian palm oil products for March 1-15 rose 8.4% from shipments in February 1-15, independent inspection company AmSpec Agri Malaysia said on Friday, while cargo surveyor Intertek Testing Services reported a 3.3% increase in the same period.
Palm oil steady after highest close in more than a year
“As shown from earlier export figures, exports were slower than traders’ expectations,” the trader said.
Dalian’s palm oil contract lost 0.22%, reversing some of its 2.28% gains earlier in the session.
Its most-active soyoil contract rose 0.49%, while soyoil prices on the Chicago Board of Trade dropped 0.24% after hitting its highest level in nearly three months.
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 break resistance at 4,326 ringgit and rise into a range of 4,378 ringgit to 4,410 ringgit per metric ton, Reuters technical analyst Wang Tao said.
Source: Brecorder
