JAKARTA: Malaysian palm oil futures closed higher on Monday, after posting a weekly gain last week, even as subdued exports data weighed on the contract.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange increased 15 ringgit or 0.39% at 3,868 ringgit ($810.05) per metric ton at close.
“Malaysia Feb. 1-25 exports are down 11% to the same period under review. With palm olein continuing to be at a premium to soybean oil for over a month now, palm export prospects are dim,” said Sathia Varqa, a senior analyst at Fastmarkets Palm Oil Analytics.
Market participants also await Feb. 1-20 output data, due this week, which is estimated to be lower and could support price recovery, he added.
The soyoil contract on the Dalian Commodity Exchange was down 0.77%, while its palm oil contract fell 0.11%. Meanwhile, soyoil prices on the Chicago Board of Trade declined 0.36%.
Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for February 1-25 fell 14.3% to 863,108 tons from 1,006,930 tons shipped during the same period in January, according to independent inspection company AmSpec Agri.
While according to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products on the same period also fell 10.7% to 951,409 metric tons from 1,064,778 metric tons shipped from Jan. 1-25.
Palm oil is biased to retest support of 3,813 ringgit per metric ton, with a good chance of breaking below this level and falling towards 3,789 ringgit
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