KUALA LUMPUR: Malaysian palm oil futures eased in early trading on Monday, as traders awaited key supply and demand data due later in the day.
Malaysian palm oil futures down
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slid 22 ringgit or 0.51% to 4,260 ringgit ($892.15) a metric ton by 0313 GMT.
Fundamentals
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The Malaysian Palm Oil Board is scheduled to release its widely-watched March supply and demand data later in the day.
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A Reuters survey pegged March inventories to fall 6.7% from February to an eight-month low of 1.79 million tons. Production is seen 9.8% higher at 1.38 million tons while exports is forecast to jump 21% to 1.23 million tons.
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Cargo surveyors are also expected to release exports estimates for April 1-15.
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India’s palm oil imports in March plunged to their lowest level in 10 months as higher prices prompted refiners to substitute palm oil with sunoil, resulting in sunoil imports reaching the second-highest on record, a leading trade body said.
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Oil prices fell on Monday as market participants dialled back risk premiums following Iran’s attack on Israel late on Saturday, which the Israeli government said caused limited damage.
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Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
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Dalian’s most-active soyoil contract rose 0.24% while its palm oil contract lost 0.77%. Soyoil prices on the Chicago Board of Trade were up 0.39%.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Palm oil may bounce to 4,326 ringgit per metric ton, as it stabilised around support at 4,242 ringgit, Reuters technical analyst Wang Tao said.
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