JAKARTA: Malaysian palm oil futures closed lower on Thursday, hit by profit-taking and weak exports in the first 10 days of February, although a drop in January end stocks limited losses.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slipped 1.13% to 5,531 ringgit ($1,322.57) per tonne. It gained 2.7% gain on Wednesday.
“Prices stayed buoyant through the midday, but came off on some selling pressure towards closing on lower export data. Players took profits after the spectacular rise,” a Kuala Lumpur-based trader told Reuters.
The palm benchmark has gained more than 17% so far this year due to top palm oil maker Indonesia’s move to restrict exports.
Exports of Malaysian palm oil products for Feb. 1-10 fell between 5% and 6.5%, compared with the same period last month, according to cargo surveyor Societe Generale de Surveillance and Intertek Testing Services. However, independent inspection company AmSpec Agri Malaysia said exports rose 0.5%.
Earlier on Thursday, industry regulator Malaysian Palm Oil Board’s (MPOB) data showed that the country’s January palm oil end-stocks fell 3.85% to 1.55 million tonnes from the previous month.
Meanwhile, Indonesia issued new export restrictions on Wednesday, saying that from Feb. 15, it will require export permits for all palm oil products. The rule previously applied only to crude palm oil, olein, used cooking oil and residues.
Elsewhere, Dalian’s soyoil contract rose 0.78%, while the palm oil contract for May delivery gained 1.49%. Soyoil prices on the Chicago Board of Trade were up 0.42%.
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