Palm oil rises on stronger Dalian rivals, lower output data
12/03/2024 (XM), Kuala Lumpur - Malaysian palm oil futures rose on Tuesday, buoyed by strength in Dalian edible oils and lower production figures in Malaysia,the world's second-biggest producer.
The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange gained 34 ringgit, or 0.82%, to 4,165 ringgit ($889.96) by the midday break.
The contract was seen trading higher on supportive February output data in Malaysia as well as bullish momentum from Dalian vegetable oils futures, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
"However, the stronger Malaysian ringgit and the absence of buying from key buyer China has capped the pace of the upside momentum in palm oil," Bagani said.
Dalian's most-active soyoil contract DBYcv1 rose 0.71%,while its palm oil contract DCPcv1 added 0.72%.Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.17%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia's palm oil stocks at the end of February dwindled to their lowest levels in seven months as production hit a 10-month low, offsetting the slowdown in exports.
Inventories at the end of February fell 5% from January to 1.92 million metric tons, crude palm oil production declined 10.18% to 1.26 million tons, while exports plunged 24.75%, data from industry regulator the Malaysian Palm Oil Board showed.
Exports of Malaysian palm oil products for March 1-10 rose 6.8% from the same period a month ago, cargo surveyor Intertek Testing Services said.
Another cargo surveyor, AmSpec Agri Malaysia, said exports during the same period rose 6.2% from a month ago.
The Malaysian ringgit MYR=, palm's currency of trade, rose 0.02% against the dollar, making the commodity more expensive for buyers holding the foreign currency.
Palm oil may rise into the 4,190-4,242 ringgit per metric ton, as it has resumed its uptrend within a rising channel, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.6800 ringgit)