KUALA LUMPUR: Malaysian palm oil futures climbed 3% on Monday, snapping a two-day decline, as an uptick in exports during March 1-20 stoked hopes for improving demand.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed up 113 ringgit, or 3.03%, at 3,837 ringgit a tonne.
Palm fell nearly 10% last week.
Exports of Malaysian palm oil products for March 1-20 rose between 5% and 7% from the same period in February, cargo surveyors said on Saturday.
“Key data will be March 1-20 palm oil production for which market is looking for a hefty recovery,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Favourable weather, increased use of fertilizer and surging prices are expected to push Indonesia’s palm oil production and exports to record highs in 2021/22, the US Department of Agriculture’s Foreign Agricultural Service post in Jakarta said in a report on Saturday.
In top buyer, India, a sudden increase in new coronavirus infections have led to the reimposition of containment measures, cautioning market participants over a possible dent in vegetable oil demand ahead of Ramadan, Bagani said. Dalian’s most-active soyaoil contract fell 0.04%, while its palm oil contract gained 1.6%. Soyaoil prices on the Chicago Board of Trade were up 0.5%.
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