The Edge Markets (27/06/2019) - SINGAPORE (June 27): Malaysian palm oil futures ticked higher on Thursday with prices supported by bargain-buying after slowing demand dragged the market down in the last five sessions to a seven-month low.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was up 0.7%, or RM14, at RM1,980 (US$477.22) per tonne by the midday break.

"Some buyers view this as a good price to buy," said one Kuala Lumpur-based trader. "Prices are likely to be locked in a range. The focus going forward is the Indian monsoon and excessive rains in the United States."

Monsoon rains have covered most parts of cane, cotton, and soybean fields in western India and some parts of rice-sowing areas in central and northern India, the country's weather office said.             

After a limp start, the rains have covered nearly half of the country.

In the United States, excessive rains and flooding have resulted in historic delays in planting corn and soybeans across the Midwest, raising concerns over supplies. But the weather is expected to improve over the next week.

The palm oil market has faced pressure from slowing demand.

On Tuesday, cargo surveyors Societe Generale de Surveillance and Intertek Testing Services said exports of Malaysian palm oil products for June 1-25 fell 15.3% and 17.8% month-on-month, respectively.                      

Independent inspection company AmSpec Agri Malaysia said exports fell 14% month-on-month for the same period.           

Chicago corn and soybeans rose, although gains were checked by favourable weather forecasts for the US Midwest grain belt which eased fears of widespread crop losses.

The most-active Chicago Board of Trade (CBOT) soyoil contract added 0.3% and China's Dalian soybean oil prices gained 0.6%.

(US$1 = RM4.1490)
(US$1 = 69.23 Indian rupees)
(US$1 = 6.88 Chinese yuan)

Read more at https://www.theedgemarkets.com/article/malaysian-palm-oil-rises-7month-low-dismal-demand-caps-gains