MARKET DEVELOPMENT
Palm oil eases from three-week peak on lacklustre export outlook
Palm oil eases from three-week peak on lacklustre export outlook
13.04.2022 (www.hellenicshippingnews.com) - Malaysian palm oil futures reversed early gains on Wednesday, easing from a nearly three-week high, as investors’ attention shifted to data that signalled a drop in export shipments.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange fell 43 ringgit, or 0.7%, to 6,134 ringgit ($1,451.15) a tonne by the midday break, on course to end a three-day climb.
Palm opened higher following bullish momentum in related edible oils, but the contract was unable to hold on to early gains as investors’ focus moved to April export performance, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Exports of Malaysian palm oil products for April 1-10 fell 20.7% from the same period in March, according to cargo surveyor Societe Generale de Surveillance on Tuesday.
Analysts had said exports this month are set to decline as top producer Indonesia will likely recapture some market share after the removal of a rule restricting exports.
Palm oil is finding demand from major buyer India, although other destinations are still away due to negative import margins, which are hurting prices, Bagani said.
Further pressuring the market, oil prices turned negative after climbing more than $1 a barrel ealier in the session, making palm a less attractive option for biodiesel feedstock. O/R
In related oils, Dalian’s most-active soyoil contract DBYcv1 rose 0.6%, while its palm oil contract DCPcv1 gained 2.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.2%.
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 a resistance at 6,326 ringgit a tonne, a break above could lead to a gain into the range of 6,454 ringgit to 6,548 ringgit, Reuters technical analyst Wang Tao said. TECH/C
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich and Sherry Jacob-Phillips)
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich and Sherry Jacob-Phillips)