The Edge Markets (14/04/2020) - KUALA LUMPUR (April 14): Malaysian palm oil futures edged down on Tuesday, weighed by concerns over rising stockpiles as global demand slows due to the coronavirus pandemic.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slipped RM1, or 0.04%, to RM2,245 per tonne by the midday break, after dropping nearly 3% in the previous session.

"The recent selloff looks a little overdone and we are seeing some good buying interest in the local cash market," Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.

"Refiners are also trying to secure enough local crude palm oil for their plants as a result of better demand at current prices," he added.

India, the world's biggest importer of palm oil, said on Monday imports of refined palm oil could recommence after being restricted in January, although with conditions attached.

Indian Prime Minister Narendra Modi on Tuesday extended a nationwide lockdown until May 3 as the number of coronavirus cases crossed 10,000 despite a three-week shutdown.

Oil prices rose more than 1% on Tuesday after the main US energy forecasting agency predicted shale output in the world's biggest crude producer would fall by the most on record in April, adding to cuts from other major producers.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian's most active soybean oil contract fell 1.9%, while its palm oil contract fell 2%. Soy oil prices on the Chicago Board of Trade dropped 0.18%.

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 fall to RM2,186 per tonne, as it has briefly pierced below a support at RM2,253, said Reuters technical analyst Wang Tao. 

Read more at https://www.theedgemarkets.com/article/palm-oil-inches-down-worries-over-rising-stocks-virus-dents-demand