Palm oil prices dip on lower exports, higher inventories
Economic Times (13/04/2020) - KUALA LUMPUR: Malaysian palm oil futures eased on Monday, pressured by falling exports amid higher March inventories as global lockdowns to stem the spread of the coronavirus curbed demand.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slid 13 ringgit, or 0.56 per cent, to 2,299 ringgit per tonne at 0236 GMT, after last week's 3 per cent jump.
FUNDAMENTALS
Malaysia's exports in April 1-10 fell between 6.6 per cent and 12 per cent from the month before, cargo surveyors said on Friday.
Malaysia's March palm oil inventories were higher than expected, rising 1.67 per cent from February as production also increased by 8.4 per cent, official data showed on Friday.
Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won't be enough to head off oversupply with the coronavirus pandemic hammering demand.
Dalian's most-active soyoil contract gained 0.56 per cent, while its palm oil contract fell 0.4 per cent. Soyoil prices on the Chicago Board of Trade were trading up 0.29 per cent.
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 retest a support at 2,253 ringgit per tonne, a break below which could cause a fall to 2,186 ringgit, Reuters technical analyst Wang Tao said.