JAKARTA: Malaysian palm oil futures dipped on Thursday, snapping a four-session rally amid profit taking and lower trading activity due to a holiday in China, while market participants awaited monthly endstock data.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed down 10 ringgit or 0.23%, to 4,397 ringgit ($928.22) a metric ton.
“The futures were seen trading sideways on a profit taking after a bullish rally on Wednesday. Market is now waiting for Malaysian palm oil full March production estimates,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Holidays in the Chinese markets for the rest of the week has also affected activity, he added.
Malaysia’s palm oil inventories are expected to have declined 6.65% from the prior month to an eight-month low of 1.79 million tons at the end of March, a Reuters survey showed on Thursday.
Palm extends gains on supply shortage ahead of Eid holiday
The Malaysian Palm Oil Board (MPOB) is scheduled to release the data on April 15.
The Dalian Commodity Exchange is closed on Thursday and Friday for the Qingming festival. Soyoil prices on the Chicago Board of Trade slipped 0.02%.
India’s rapeseed and mustard output is likely to rise 7% from last year to a record 12.09 million metric tons in 2024. This will help the world’s biggest vegetable oil importer cut back on edible oil imports.
India’s palm oil imports hit a 10-month low in March to 481,000 tons, as the top vegetable oil importer increased sunflower oil purchases amid lower prices, traders said.
Oil prices were steady on Thursday, shored up by concerns about lower supply as major producers keep output cuts in place and on signs of stronger economic growth in the U.S., the world’s biggest oil consumer.
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