KUALA LUMPUR: Malaysian palm oil futures ended more than 1% higher on Tuesday to mark its highest close in over a week, as stronger rival soyaoil and signs of lower April production underpinned prices.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed higher 53 ringgit, or 1.42%, to 3,792 ringgit ($918.16) a tonne. Southern Peninsula Palm Oil Millers’ Association (SPPOMA) forecast production during April 1-5 to decline 6% from the month before, traders said.
Exports from Malaysia during the same period rose 10.6% month-on-month, Intertek Testing Services said.
April supply is expected to remain tight as a Reuters’ survey pegged end-March inventories to rise 1.3% from the month before to 1.32 million tonnes. “The recent rally in futures also supported the cash market prices to balloon and keep crude palm oil import margins in positive territory,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Dalian’s most-active soyoil contract gained 2.7%, while its palm oil contract were also up 2.7%.