Palm rangebound ahead of export data
20/02/2025 (New Straits Times), Kuala Lumpur - Malaysian palm oil futures traded in a tight range on Thursday, as traders awaited export estimates for further cues.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange slid RM4, or 0.09 per cent, to RM4,668 (US$1,053.96) a metric ton in early trade. The contract rose 3.73 per cent in the previous session.
FUNDAMENTALS
Dalian's most-active soyoil contract rose 0.48 per cent, while its palm oil contract added 2.08 per cent. Soyoil prices on the Chicago Board of Trade were up 0.35 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Cargo surveyors are expected to release Malaysian palm oil export estimates for February 1-20 later in the day.
The ringgit, palm's currency of trade, strengthened 0.2 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Oil prices edged lower after an industry report showed a build in US crude stockpiles and as tariff concerns weighed on sentiment, falling back from gains made in the previous session on worries over supply disruptions in Russia.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Malaysia maintained its March export tax for crude palm oil at 10 per cent and lowered its reference price to RM4,390.37 (US$988.38) per ton, a circular on the Malaysian Palm Oil Board website showed.
Palm oil may revisit its February 19 high of RM4,695 per metric ton, as a bounce from RM4,489 looks incomplete, Reuters technical analyst Wang Tao said.
MARKET NEWS
Asian shares fell sharply, tracking choppy trading on Wall Street and a dip in European stocks as US President Donald Trump's tariff plans and a cautious stance from Federal Reserve policymakers hurt risk sentiment. - Reuters