KUALA LUMPUR: Malaysian palm oil futures edged lower in range-bound trading on Thursday, weighed down by expectations of rising production.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,165 ringgit ($526.12) a tonne at the midday break; poised for a second session of declines.
The market had dropped as much as 2 percent in the previous session as official data from the Malaysian Palm Oil Board (MPOB) showed March end-stocks and production at higher levels than expected.
The MPOB data showed end-stocks dropped 4.6 percent to 2.92 million tonnes from February, while output rose 8.3 percent to 1.67 million tonnes on-month.
"Players are digesting April's supply and demand after Wednesday's selloff on higher-than-expected MPOB stocks. The market is stuck on a mixed view," said a Kuala Lumpur-based trader. "However, I think we are seeing a lower market on a higher April production outlook."
Meanwhile, Malaysian palm oil exports during the April 1-10 period rose from the corresponding period last month by 6.2 percent and 12.6 percent, according to Amspec Agri Malaysia and Intertek Testing Services respectively.
In other related oils, Chicago May soybean oil contract was down 0.3 percent, and the May soyoil contract on the Dalian Commodity Exchange slipped 0.1 percent.Meanwhile, the Dalian May palm oil contract declined 0.6 percent.
Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.
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