KUALA LUMPUR: Malaysian palm oil futures firmed on Thursday ahead of June export data, but worries over declining shipments and rising production set the contract for its biggest monthly slump since the 2008 financial crisis.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 12 ringgit, or 0.24%, to 4,915 ringgit ($1,116.54) a tonne during early trade. For the month, the contract plunged 22%, its sharpest drop since October 2008.
Fundamentals
Cargo surveyors are expected to release estimates for June exports later in the day. Traders are expecting shipments to remain weak amid top producer Indonesia’s push to boost exports.
Industry groups have so far pegged a double-digit growth in production this month, although temporary mill closures in some parts of Malaysia due to declining palm prices may hurt output.
Dalian’s most-active soyoil contract fell 0.2%, while its palm oil contract eased 0.02%. Soyoil prices on the Chicago Board of Trade were up 0.2%.
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 test a support at 4,742 ringgit per tonne, as it could have completed a bounce from the recent low of 4,493 ringgit, Reuters technical analyst Wang Tao said.
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