KUALA LUMPUR: Malaysian palm oil futures on Tuesday touched a record high of 5,773 ringgit ($1,379.62) a tonne after data showed a surge in early February exports, although they ended lower.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 7 ringgit, or 0.12%, to 5,660 ringgit ($1,352.61) a tonne, after jumping 1.87% earlier in the session.
Exports of Malaysian palm oil products for Feb. 1-15 rose between 18.8% and 23.6% from the same period in January, independent inspection company AmSpec Agri Malaysia said.
“The market traded higher on the current palm demand as well as the lineups till the first week of March; these showing Indonesian sides nominating local shipments to destinations,” Marcello Cultrera, institutional sales manager and broker at Phillip Futures in Kuala Lumpur.
Yet, the upside was capped below 5,700 ringgit on expectations of a rise in production, he added. Refinitiv Agriculture Research on Monday said the contract will edge up towards resistance levels at 5,690-5,710 ringgit this week, while support levels are at 5,210-5,220 ringgit, underpinned by weak production, Indonesia’s export regulations and India’s import duty cut on crude palm oil.
In other related oils, Dalian’s most-active soyoil contract rose 0.6%, while its palm oil contract gained 1.4%. Soyoil prices on the Chicago Board of Trade were down 1%. Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
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