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Thursday, September 29, 2022

Palm oil ends three-day climb on lacklustre export outlook

KUALA LUMPUR: Malaysian palm oil futures ended lower on Wednesday after gaining for three straight days, as investor focus shifted to data that signalled a drop in exports.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 49 ringgit, or 0.79%, to 6,128 ringgit ($1,449.04) a tonne.

Palm opened higher following bullish momentum in related edible oils, but the contract was unable to hold on to early gains as investor focus moved to April export performance, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Exports of Malaysian palm oil products for April 1-10 fell 20.7% from the same period in March, according to cargo surveyor Societe Generale de Surveillance on Tuesday.

Analysts had said exports this month are set to decline as top producer Indonesia will likely recapture some market share after the removal of a rule restricting exports.

Palm oil is finding demand from major buyer India, although other destinations are still away due to negative import margins, which are hurting prices, Bagani said.

India’s palm oil imports jumped 18.7% in March from the previous month, as traders moved to secure alternatives to sunflower oil that can no longer be bought from Ukraine, the Solvent Extractors’ Association of India said.

In related oils, Dalian’s most-active soyoil contract rose 0.6%, while its palm oil contract gained 2.3%. Soyoil prices on the Chicago Board of Trade were down 0.1%.

Palm oil ends three-day climb on lacklustre export outlook

Source: Brecorder

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