JAKARTA: Malaysian palm oil futures inched higher on Wednesday, tracking Dalian’s palm oil contract, although weak exports data and lack of fresh demand weighed on the market.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 8 ringgit, or 0.21%, to 3,868 ringgit ($807.18) per metric ton at the close.
Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil trader said, low exports and a lack of fresh demand is affecting the futures.
Palm oil falls as weaker exports weigh
The soyoil contract on the Dalian Commodity Exchange was down 0.22%, while its palm oil contract rose 0.76%. Meanwhile, soyoil prices on the Chicago Board of Trade traded flat.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Feb. 1-20 were seen falling by 3.4% to 18.3% from the previous month, cargo surveyors data showed.
Oil prices regained some ground in early Asian trade on Wednesday as investors weighed concerns over output cuts by key producers and attacks on ships in the Red Sea against fading expectations of U.S. rate cuts.
Palm oil looks neutral in a narrow range of 3,856-3,891 ringgit per metric ton, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
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