Palm oil ends higher as exports rise, India loosens restrictions

• The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed up 1.49% at 2,585 ringgit ($618.42) per tonne, after falling to their lowest in the session since Nov. 8 last year.

KUALA LUMPUR: Malaysian palm oil futures snapped two days of losses on Thursday, following an increase in exports and news of India resuming purchases of refined palmolein after issuing a restriction in January.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed up 1.49% at 2,585 ringgit ($618.42) per tonne, after falling to their lowest in the session since Nov. 8 last year.

Fears of slower exports to India after New Delhi's restriction on import of refined palm oil and weak consumption in virus-hit China have dragged down prices this month.

However, prices rebounded after cargo surveyers reported that Malaysia's Feb. 1-20 exports increased by 8.7%-10.9% from the month before.

India, meanwhile, issued import licences for 1.1 million tonnes of refined palmolein from Indonesia, government and trade sources told Reuters, a move that surprised the industry.

Palm oil also tracked gains in rival edible oils. Dalian's most-active palm oil contract gained 1.2% and soyoil contract edged up 0.4%. Soyoil prices on the Chicago Board of Trade also rose 0.1%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

The ringgit, palm's currency of trade, was down 0.43% against the dollar, making the tropical oil cheaper for holders of foreign currency.

Meanwhile, Malaysia expects to fully implement its B20 biodiesel programme by mid-2021 and estimates that it would absorb 1.06 million tonnes of palm oil annually, the primary industries ministry said on Thursday.