Palm oil snaps three days of losses to rise on March stocks data
10/04/2023 (Business Recorder), Jakarta - Malaysian palm oil futures closed a touch higher on Monday, snapping three days of losses after a report showed a sharp drop in stocks last month, though weak exports in the April 1-10 period limited gains.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 0.95% to 3,830 ringgit ($868.87) per tonne on closing.
“Palm ended the day higher after a bullish Malaysian Palm Oil Board (MPOB) March report showing a record fall in monthly stocks against a gloomy April outlook,” said Sathia Varqa, managing editor of palm oil analytics at Fastmarkets.
Malaysia’s palm oil stocks stood at 1.67 million tonnes by the end of March, down 21.08% from the previous month, data from industry regulator the MPOB showed on Monday.
Meanwhile exports of Malaysian palm oil products for April 1-10 fell 35.6% to 322,985 tonnes from 501,514 tonnes shipped during March 1-10, cargo surveyor Intertek Testing Services said on Monday.
Dalian’s most active soyoil contract dropped 1.57%, while its palm oil for May delivery was 1.11% lower. The Chicago Board of Trade contract rose 0.73%.
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 test support at 3,740 ringgit per tonne, a break below which could open the way towards a range of 3,683-3,718 ringgit, said Reuters technical analyst Wang Tao.