- Malaysia's exports during August 1-25 fell 12.3% from the same period in July, cargo surveyor Amspec Agri said
KUALA LUMPUR: Malaysian palm oil futures ticked up on Wednesday, tracking stronger Dalian oils and rival soyoil, but a drop in August exports and estimates of better output capped gains.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 28 ringgit, or 0.65%, to 4,331 ringgit ($1,028.01) a tonne by the midday break.
Malaysia's exports during August 1-25 fell 12.3% from the same period in July, cargo surveyor Amspec Agri said.
The Malaysian Palm Oil Association's (MPOA) recent estimates of improving production and demand concerns after India reduced the import duty for competing edible oils, are pressuring palm prices from moving higher, a Singapore-based trader said.
MPOA's forecast of a rise in August 1-20 production triggers a higher possibility of Malaysia's production to return to normal peak in the third quarter, the trader said.
IOI Corporation, in its second-quarter financial results late on Tuesday, said it expects a strong crude palm oil price trend for the next few months as a labour shortage and coronavirus curbs continue to weaken output in the near term.
European Union palm oil imports in the 2021/22 season had reached 602,958 tonnes by Aug. 22, versus 985,514 tonnes in the previous season, European Commission data showed on Tuesday.
Dalian's most-active soyoil contract gained 1.6%, while its palm oil contract rose 1.5%. Soyoil prices on the Chicago Board of Trade were down 0.7% after rising 3.4% in the previous session.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may test a resistance at 4,358 ringgit per tonne, a break above which could lead to a gain into a range of 4,405 ringgit to 4,464 ringgit, Reuters technical analyst Wang Tao said.