SINGAPORE: Malaysian palm oil futures were little changed on Tuesday after three consecutive sessions of gains, as strong exports and Chinese demand were offset by weaker Chicago soyoil prices.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange closed up 1 ringgit or 0.03% at 3,781 ringgit ($798.69), hovering at a near three-week high.
Exports of Malaysian palm oil products for Oct. 1-Oct. 15 rose 5.6% from Sept. 1-Sept. 15, independent inspection company AmSpec Agri Malaysia said on Sunday.
Another cargo surveyor, Intertek Testing Services, said exports rose 7.3%. Malaysia has maintained its November export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Tuesday.
Major importer China’s active purchasing for reserve restocking has contributed to price increases, said Mitesh Saiya, trading manager for Kantilal Laxmichand & Company Mumbai.
Further supporting prices was Southern Peninsular Palm Oil Millers Association data, which showed production in the first half of October fell by 0.73% month-on-month, LSEG Agriculture Research said in a note late Monday.
Dalian’s most-active soyoil contract rose 0.3%, while its palm oil contract was down 0.1%. Soyoil prices on the Chicago Board of Trade fell 0.3%.