JAKARTA: Malaysian palm oil futures rose on Thursday, tracking rival oils’ movement in Dalian and Chicago markets, although caution over US tariffs capped gains.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange added 63 ringgit, or 1.43%, to close at 4,480 ringgit ($1,012.43) a metric ton.
The market is still cautious as confusion over US tariffs on Mexico and Canada persists, said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.
“The direction from the related soy oil, canola and rapeseed futures is also not clear from the North American and European markets, while Chinese futures were seen trading a little higher this morning.” Dalian’s most-active soyoil contract gained 0.92%. Its palm oil contract advanced 1.93%, while Soyoil prices on the Chicago Board of Trade (CBOT) rose 0.37%.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market. Indonesia exported 29.54 million metric tons of palm oil products last year, an 8.3% drop on-year, data released on Thursday by GAPKI, the Indonesia Palm Oil Association, showed.
Malaysia’s February palm oil inventories are estimated to have fallen to their lowest in nearly three years on production disruptions caused by floods, a Reuters survey showed.
Palm oil plantations in two states in Malaysia, the world’s second-biggest producer of the commodity, have been hit by infestations, a minister said, as the country recovers from floods that have disrupted production.
Oil rose after heavy sell-offs drove the market to a multi-year low, however tariff uncertainties and a rising supply outlook capped gains.
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