KUALA LUMPUR: Malaysian palm oil futures edged higher on Wednesday, supported by firm cargo surveyor export data for the first 20 days of this month although higher-than-expected production weighed on the market.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange was up 0.1 percent at 2,262 ringgit a tonne at the midday break. Earlier in the session, the contract fell to a three-session low of 2,252 ringgit.
Trading volumes stood at 10,013 lots of 25 tonnes each at noon. <1FCPO-TOT>
The market was held by firm export figures, said a Kuala Lumpur-based trader, adding that he was not bullish as production is still higher than expected.
"On a year-on-year basis, production is still high," he said.
Malaysia's palm oil exports from Feb. 1-20 rose 0.03 percent from a month earlier, independent inspection company AmSpec Agri Malaysia reported on Wednesday.
Production fell 3.9 percent to 1.74 million tonnes in January, data from the Malaysian Palm Oil Board showed.
Output of the edible oil typically falls during the first quarter of the year in line with seasonal trend.
In other related oils, the Chicago March soybean oil contract was up 0.4 percent, while the May soyoil contract on the Dalian Commodity Exchange fell 0.7 percent.
Meanwhile, the Dalian May palm oil contract declined 1.3 percent. Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market.
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