JAKARTA: Malaysian palm oil futures rose slightly in early trade on Thursday amid supply concerns as top palm oil producer Indonesia expanded its export permit requirement for palm oil products.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange climbed 0.07% to 5,598 ringgit ($1,338.59) per tonne by midday break.
"Prices at high levels after Indonesia put restrictions across all products. Prices up mainly on hedge buying, may ease again once permits given for exports," a Kuala Lumpur-based trader told Reuters.
Indonesia had expanded its export permit requirement for palm oil products where exporters must sell 20% of their planned exports at home and with a price cap to include other derivatives, a Trade Ministry regulation reviewed by Reuters on Wednesday showed.
Palm rebounds on supply worries after Indonesia's fresh restrictions for exports
The regulation previously only set for exports of crude palm oil, olein, used cooking oil and residue.
Industry regulator Malaysian Palm Oil Board (MPOB) also showed on Thursday that the country's January palm oil end-stocks fell 3.85% to 1.55 million tonnes from the previous month.
Dalian's soyoil contract rose 1.37%, while the palm oil contract for May delivery gained 2.57%. Soyoil prices on the Chicago Board of Trade were up 0.33%.
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 5,676 ringgit per tonne, a break above which could lead to a gain to 5,749 ringgit, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.