Business Recorder (15/04/2020) - Malaysian palm oil futures recouped early losses on Tuesday supported by the prospect of a lower-than-expected fall in exports between April 1-15, although concerns over rising stockpiles due to slowing demand capped gains.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange closed up 1 ringgit, or 0.04%, to 2,247 ringgit ($518.94) per tonne, after dropping nearly 3% in the previous session.

Data due on Wednesday, is expected to show that exports fell 4%-6% between April 1-15. Malaysia's palm oil exports in April 1-10 fell between 6.6%-12% from the month before, according to cargo surveyors.

“The market closed a tad higher on lower volume, indicating the uncertainty over the demand in the days ahead," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.

“The recent selloff looks a little overdone and we are seeing some good buying interest in the local cash market."

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 conditions were 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.

Dalian's most active soybean oil contract fell 1.9%, while its palm oil contract fell 1.5%. Soy oil prices on the Chicago Board of Trade dropped 0.48%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Oil prices edged lower on Tuesday, with investors apparently unconvinced that record supply cuts could soon balance markets pummelled by the virus outbreak, though a predicted plunge in US shale output provided some support.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Read more at https://www.brecorder.com/2020/04/15/589419/malaysian-palm-oil-edges-up/