JAKARTA: Malaysian palm oil futures closed down on Tuesday, snapping previous session gains, as the market is awaiting Malaysia’s palm oil export and production performance for further cues.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange dropped 54 ringgit, or 1.40%, to 3,814 ringgit ($808.56) a metric ton on the closing.
“The futures were seen trading slightly higher on the back of a bullish momentum rival oils futures in Asian hours. The market is now focussed on May 1-15 palm oil export and production performance,” said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group. Dalian’s most-active soyoil contract rose 1.23%, while its palm oil contract gained 1.60%. Soyoil prices on the Chicago Board of Trade decreased 3.06%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. India’s palm oil imports rose to their highest level in three months in April as lower prices lured buyers, a leading trade body said on Tuesday. It rose 40.9% in April from the previous month to stand at 684,094 metric tons.
US soybeans were 35% planted, compared with the five-year average of 34% and analysts’ estimates of 39%. Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports of Malaysian palm oil products for May 1-10 at 263,369 metric tons, according to LSEG. Oil prices were little changed on Tuesday as investors eyed fresh drivers, including upcoming US inflation indicators and a monthly report from the Organization of the Petroleum Exporting Countries this week. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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