Malaysian palm oil price reverses losses on stronger demand outlook

  • Business
  • Wednesday, 24 Apr 2019

Malaysian palm oil futures fell over 1 percent on Friday, recording a fifth session of declines in six, tracking weakness in soyoil on the U.S. Chicago Board of Trade (CBOT).

KUALA LUMPUR: Malaysian palm oil futures recouped earlier losses to close flat at the end of the trading day on Wednesday, helped by gains in the U.S. soyoil and on prospects of improving export demand.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was at 2,170 ringgit ($526.06) a tonne at the close of trade.

It earlier fell as much as 1.4 percent to a low of 2,140 ringgit, its weakest level since April 16, on overnight weakness in the U.S. soyoil.

A Kuala Lumpur-based futures trader said the market had recovered on expectations of better export demand, gains in U.S. soyoil and technical buying.

Malaysian palm oil export data for the April 1-25 period is scheduled for release by cargo surveyors after 0400 GMT on Thursday. It is expected to show gains versus the corresponding time period in March.

Cargo surveyors Societe Generale de Surveillance and Intertek Testing Services last reported export gains of 1.5-2.2 percent for the April 1-20 period, while AmSpec Agri Malaysia reported a 1.8 percent decline.

Chicago May soybean oil had dropped 2.2 percent on Tuesday on bearish fundamentals, but was last up 0.6 percent. 

In other related oils, the May soyoil contract on the Dalian Commodity Exchange fell 1 percent, and the Dalian May palm oil contract also declined 1 percent.

Palm oil prices are affected by movements in soyoil, as they compete for a share in the global vegetable oil market. - Reuters

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