KUALA LUMPUR: Malaysian palm oil futures rose on Monday, recouping some losses from a plunge last week, as it tracked firmer prices of rival oils, but gains were capped by weak exports in June so far.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 90 ringgit, or 1.93%, to 4,754 ringgit ($1,079.47) a tonne by the mdiday break.
Palm declined 14.5% last week, effectively giving up most the gains for this year so far.
The contract had rallied earlier this year due to a global edible oil shortage after Russia’s invasion of Ukraine disrupted supplies of sunflower oil.
The market on Monday tracked higher closing in Chicago soyoil on Friday night, a Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products for June 1-25 fell between 13% and 19.6% from the same period in May, according to cargo surveyors on Saturday.
Meanwhile, Germany does not expect its proposal for a temporary waiver on biofuel mandates to get agreement from the Group of Seven leading industrialized democracies due to resistance from the United States and Canada, a German government source said.
Dalian’s most-active soyoil contract rose 0.8%, while its palm oil contract fell 0.8%.
Soyoil prices on the Chicago Board of Trade were down 0.5%, after rising 1.7% 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.
Comments
Comments are closed.