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Palm oil edges up, concerns over higher April stocks cap rise

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Commodities

CUE API | KUALA LUMPUR | Updated on: May 09, 2022

Last week, palm oil plunged 10 per cent on the possibility of Indonesia lifting exports ban

Malaysian palm oil futures ticked up on Monday after last week’s tumble, but estimates of a rise in April inventories kept gains in check.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 36 ringgit, or 0.36 per cent, to 6,436 ringgit ($1,471.09) a tonne during early trade.

Palm plunged 10 per cent last week on the possibility of top producer Indonesia lifting a ban on exports.

FUNDAMENTALS

* Malaysia’s palm oil inventories at the end of April likely rose for the first time in six months to 1.55 million tonnes as production and imports climbed, a Reuters survey showed on Friday.

* The Malaysian Palm Oil Board and cargo surveyors are scheduled to release key supply and demand data on Tuesday.

* Dalian’s most-active soyoil contract fell 0.7 per cent, while its palm oil contract eased 0.9 per cent. Soyoil prices on the Chicago Board of Trade were down 0.2 per cent.

* 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 end its fall in a support zone of 6,190-6,290 ringgit, and then test a resistance at 6,602 ringgit a tonne, Reuters technical analyst Wang Tao said.

Published on May 09, 2022

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