MARKET DEVELOPMENT
Palm Oil Edges Higher But Lower June Export Expectations Cap Gains
Palm Oil Edges Higher But Lower June Export Expectations Cap Gains
12/07/2016 (Reuters) - Malaysian palm oil futures edged up on Monday after touching their lowest level in nine months earlier in the session but gains were capped as sentiment remained weak on expectations of lower exports in June.
Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange were up0.27 percent at 2,247 ringgit ($563.16) per tonne as of 0738GMT, after falling to as much as 2,217 ringgit earlier in the day, the lowest level since Oct. 9, 2015.
"The Malaysian Palm Oil Board's (MPOB) data for June is expected to show higher stocks and lower exports," said a trader from Kuala Lumpur. The MPOB data is due on July 12.
The September contract for soybean oil, a substitute for palm oil, on the Dalian Commodity Exchange rose 1.2percent, while the most actively traded September contract for palm olein surged 1.7 percent, tracking gains in U.S. soy oil.
China is the world's second-largest palm oil consuming country after India.
U.S. soy oil futures were 0.7 percent higher.
Higher stockpiles in Malaysia should pressure palm oil prices lower, forecast a Reuters poll of eight traders, analysts and planters. The survey showed inventories likely rose 7.4percent to 1.77 million tonnes in June, while exports slumped6.4 percent from May.
Output is seen rising for a fourth consecutive month in line with seasonal trend to reach 1.51 million tonnes. (MYPOMP-CPOTT)($1 = 3.9900 ringgit)
Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange were up0.27 percent at 2,247 ringgit ($563.16) per tonne as of 0738GMT, after falling to as much as 2,217 ringgit earlier in the day, the lowest level since Oct. 9, 2015.
"The Malaysian Palm Oil Board's (MPOB) data for June is expected to show higher stocks and lower exports," said a trader from Kuala Lumpur. The MPOB data is due on July 12.
The September contract for soybean oil, a substitute for palm oil, on the Dalian Commodity Exchange rose 1.2percent, while the most actively traded September contract for palm olein surged 1.7 percent, tracking gains in U.S. soy oil.
China is the world's second-largest palm oil consuming country after India.
U.S. soy oil futures were 0.7 percent higher.
Higher stockpiles in Malaysia should pressure palm oil prices lower, forecast a Reuters poll of eight traders, analysts and planters. The survey showed inventories likely rose 7.4percent to 1.77 million tonnes in June, while exports slumped6.4 percent from May.
Output is seen rising for a fourth consecutive month in line with seasonal trend to reach 1.51 million tonnes. (MYPOMP-CPOTT)($1 = 3.9900 ringgit)