07.07.2023 (Hellenic Shipping News) - Malaysian palm oil futures climbed on Thursday, with market sentiment strengthening on forecasts of lower June production and expectations of exports picking up.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed up49 ringgit, or 1.27%, to 3,911 ringgit ($839.27) a metric ton, ending a two-day slump.

The Malaysian Palm Oil Association estimated production in June to decline 7.4% from May, according to traders and analysts.

Malaysia’s palm oil inventories likely stood at 1.86 million metric tons by the end of June, up 10.5% month-on-month to stand at a four-month high amid sluggish exports, a Reuters survey showed on Tuesday.

The Malaysian Palm Oil Board (MPOB) is scheduled to release supply and demand data on July 10.

Dalian’s most-active soyoil contract gained 0.07%, while its palm oil contract rose 0.03%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.2%, after a 2% overnight climb.

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 rise towards its November 2022 high of 4,497 ringgit per metric ton in the third quarter, as it has found strong support at 3,197 ringgit.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Sherry Jacob-Phillips, Nivedita Bhattacharjee and Janane Venkatraman)

https://www.hellenicshippingnews.com/palm-oil-climbs-more-than-1-on-lower-output-forecast/