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Jun 01, 2020 PRINT EDITION
Markets

Malaysian palm oil moves higher

Malaysian palm oil futures ended higher on Monday, snapping a four-day losing streak, as cargo surveyor data showed better-than-expected exports for the first five days of this month.

April 07, 2020

Malaysian palm oil futures ended higher on Monday, snapping a four-day losing streak, as cargo surveyor data showed better-than-expected exports for the first five days of this month.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed up 9 ringgit, or 0.4%, at 2,254 ringgit ($516.97) a tonne, after declining 1% in early trade.
Palm prices fell 5.6% last week on demand worries as more countries, including top buyer India, closed businesses and imposed lockdowns to stem the spread of the coronavirus.
"The market fell on weakness in soyabean oil and crude oil in early trade, but regained grounds on reports of higher exports by Intertek Testing Services (ITS) for the first five days of April," a Kuala Lumpur-based trader said.
Palm oil exports during April 1-5 rose 10.6% from a month earlier, ITS said.
Malaysia's end-March palm oil stockpile likely fell 1.9% from February to 1.65 million tonnes, a Reuters survey showed. Output was forecast to rise 2%, while exports likely jumped 6%.
Soyaoil prices on the Chicago Board of Trade fell 0.23%. China's Dalian market was closed for trading for a holiday.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Edible oil imports in India, the world's largest edible oil buyer, is down 32% from the year before, according to an industry body. The country is in the middle of a three-week lockdown to curb the coronavirus outbreak.
Oil prices fell on Monday, after the world's top producers delayed a meeting to discuss output cuts that could partly alleviate oversupply in global markets as the coronavirus pandemic pummels demand.
Weaker crude oil futures make palm a less appealing option for biodiesel feedstock.

Copyright Reuters, 2020