Palm oil ticks up on lower rapeseed projections
11/06/2024 (Business Recorder), Singapore - Malaysian palm oil futures rose Tuesday, reversing midday losses, as lower rapeseed projections overshadowed U.S. soybean ratings, which were as expected.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 14 ringgit, or 0.36%, to 3,933 ringgit ($833.79) a metric ton.
In its first production estimates for this year’s harvest, France’s farm ministry projected the winter rapeseed crop at 4.2 million tons, down 1.2% from 2023.
Dalian’s most active soyoil contract slid 1.7%, while its palm oil contract lost 2.69%. Soyoil prices on the Chicago Board of Trade slipped 0.48%.
The USDA’s soybean crop ratings were in line with trade expectations. Soybean conditions were rated 72% “good-to-excellent” in the USDA’s first ratings of 2024 for the oilseed.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
While a weak ringgit is currently supporting palm oil prices, lower Malaysian exports expected in June have “capped the gains for upside” in the near term, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co.
Cargo surveyors Intertek Testing Services and AmSpec Agri said exports of Malaysian palm oil products for June 1-10 fell 20.4% and 21.6%, respectively, compared to May 1-10.
Cargo surveyor Societe Generale de Surveillance, however, estimated exports for June 1-10 at 347,045 tons, up 31.8% from 263,369 tons shipped during May 1-10.
The ringgit, palm’s currency of trade, strengthened 0.04% against the dollar after declining 0.66% on Monday.
Palm oil may fall this week towards the support levels of 3,850-3,870 ringgit per ton, with resistance at 3,980-4,000 ringgit, LSEG said in a report.
Source: Reuters