Palm slips on profit-taking, Thailand’s export restrictions caps fall
- Soyoil prices on the Chicago Board of Trade were up 0.07%
KUALA LUMPUR: Malaysian palm oil futures edged lower on Monday, as profit-taking pressured the market, though Thailand’s crude palm oil export restrictions capped the decline.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange shed 27 ringgit, or 0.56%, to 4,812 ringgit ($1,195.53) a metric ton at the close.
Some profit-taking was witnessed as most bullish factors were already priced in, leaving the market without fresh guidance, said Anilkumar Bagani, commodity research head at Sunvin Group, a Mumbai-based brokerage.
However, Bagani said the market recovered slightly from the early lows as news of Thailand’s crude palm oil export restriction began to spread.
Thailand’s Commerce Ministry said it will tighten crude palm oil exports and control bottled palm oil prices starting from April 7, with biodiesel demand rising because of soaring global fuel prices driven by the Middle East conflict.
Oil prices fell more than $2 in choppy trade, as investors awaited clarity on the status of talks between the U.S. and Iran and remained wary about sustained supply losses due to shipping disruptions.
Weaker crude oil futures make palm a more attractive option for biodiesel feedstock.
Soyoil prices on the Chicago Board of Trade were up 0.07%. The Dalian Commodity Exchange was closed for a public holiday.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Malaysia’s palm oil inventories probably dropped in March by the most in three years to stand at their lowest since last July, as a surge in exports more than offset a modest output increase, a Reuters survey showed.
The ringgit, palm’s currency of trade, strengthened 0.07% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
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