NEW DELHI: Malaysian palm oil futures opened higher on Tuesday, and snapped three consecutive sessions of losses, supported by the prospect of lower inventories.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 18 ringgit, or 0.42%, to 4,313 ringgit ($908.19) a metric ton in early trade.
Palm extends gains on Chicago soyoil strength; Dalian closed
Fundamentals
Malaysia’s palm oil inventories are likely 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.
The Malaysian Palm Oil Board (MPOB) is scheduled to release the data on April 15.
India’s palm oil imports fell to their lowest level in 10 months in March as buyers substituted it with cheaper sunflower oil.
Soyoil prices on the Chicago Board of Trade rose 0.11%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may drop further to 4,242 ringgit per metric ton, as pointed by a rising trendline.
Comments