KUALA LUMPUR: Malaysian palm oil futures rose for a second consecutive session on Tuesday, tracking strength in rival edible oils and buoyed by expectations of lower output in the world’s second-biggest producer.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed up 39 ringgit or 1.03%, to 3,841 ringgit ($806.42).
Palm rebounded with overnight recovery in rival oilseeds, a Kuala Lumpur-based trader said.
“Supportive Malaysian Palm Oil Board January polls showing lower production and endstocks, coupled with a weaker ringgit, also kept palm prices on a positive note.”
Dalian’s most-active soyoil contract edged up 0.03%, while its palm oil contract added 0.99%. Soyoil prices on the Chicago Board of Trade were up 0.97%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
The ringgit, palm’s currency of trade, fell 0.32% against the dollar, making the commodity less expensive for buyers holding the currency.
India’s January palm oil imports hit 3-month low as soyoil shipments rise
Malaysia’s palm oil stocks likely fell for three straight months to the end of January, in line with seasonal low production, a Reuters survey showed on Monday.
Palm oil stocks were seen falling to 2.14 million metric tons in January, down 6.62% from December, according to 10 traders, planters and analysts. Crude palm oil output was seen at 1.37 million tons, an 11.83% decline from the previous month.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly data on Feb. 13.
India’s palm oil imports fell to a three-month low in January, as refiners increased buying of soyoil due to negative refining margins for crude palm oil, five dealers told Reuters on Monday.
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