Palm oil trades lower as market waits for export and production data
14/05/2024 (Reuters), Jakarta - Malaysian palm oil futures reversed gains on Tuesday as the market is awaiting Malaysia's palm oil export and production performance for further cues.
The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange was up 5 ringgit, or 0.13%, to 3,873 ringgit ($819.51) a metric ton during the midday break.
"The futures were seen trading slightly higher on the backof a bullish momentum rival oils futures in Asian hours. The marketis now focussed on May 1-15 palm oil export and production performance," said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
Dalian's most-active soyoil contract DBYcv1 rose 1.10%, while its palm oil contract DCPcv1 gained 1.98%. Soyoil prices on the Chicago Board of Trade BOcv1 dropped 0.66%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
U.S. soybeans were 35% planted, compared with the five-year average of 34% and analysts' estimates of 39%.
Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports of Malaysian palm oil products for May 1-10 at 263,369 metric tons, according to LSEG.
Oil prices were little changed on Tuesday as investors eyed fresh drivers, including upcoming U.S. inflation indicators and a monthly report from the Organization of the Petroleum Exporting Countries this week. O/R
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil FCPOc3 may keep rising into a range of 3,926 ringgit to 3,969 ringgit per metric ton, as suggested by a falling wedge, according to Reuters' technical analyst Wang Tao.
($1 = 4.7260 ringgit)