KUALA LUMPUR: Malaysian palm oil futures were little changed on Tuesday after closing at near 8-month highs in the previous session, as stronger rival oils and crude oil prices offset a decline in exports.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 4 ringgit, or 0.10%, to 4,135 ringgit ($883.92) during early trade.
The contract closed at its highest levels since July 24, 2023 on Monday.
Fundamentals
Dalian’s most-active soyoil contract rose 0.5%, while its palm oil contract added 0.39%. Soyoil prices on the Chicago Board of Trade were down 0.21%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Oil prices rose in early Asian trading, but price moves were limited as the market waited for monthly reports from oil agencies.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Malaysia’s palm oil stocks at the end of February dwindled to their lowest levels in seven months as production hit a 10-month low, offsetting the slowdown in exports, the industry regulator said on Monday.
Inventories at the end of February fell 5% from the previous month to 1.92 million metric tons, crude palm oil production declined 10.18% to 1.26 million tons, while exports plunged 24.75% to 1.02 million tons, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed.
Exports of Malaysian palm oil products for March 1-10 rose 6.8% to 382,640 tons from 358,365 tons shipped during the previous month, cargo surveyor Intertek Testing Services said.
Another cargo surveyor, AmSpec Agri Malaysia, said exports during the same period rose 6.2% from a month ago to 325,543 tons.
Palm oil may rise into 4,190-4,242 ringgit per metric ton, as it has resumed its uptrend within a rising channel, Reuters technical analyst Wang Tao said.