Malaysian palm oil higher
Malaysian palm oil futures rose 0.89% on Monday, closing at 4,539 ringgit per metric ton. Gains were limited by weaker soyoil prices and lower palm oil export estimates for early February. Uncertainty over India’s potential import duty hike and weaker crude oil prices also influenced the market.
KUALA LUMPUR: Malaysian palm oil futures recouped the session’s earlier losses to settle higher on Monday, while weakness in soyoil prices and lower palm oil exports estimates for the first two weeks of February capped gains.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 40 ringgit, or 0.89%, to close at 4,539 ringgit ($1,024.14) a metric ton. The contract rose 0.83% on Friday.
At the midday session, crude palm oil futures traded lower due to weakness in soyoil markets and a weaker Malaysian palm oil export performance for the first half of February, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group.
“Talks of India raising import duties on vegetable oils are also creating uncertainties in the origin markets.” Dalian’s most-active soyoil contract fell 0.93%, while its palm oil contract rose 0.58%. The Chicago Board of Trade (CBOT) is closed for a public holiday. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices were little changed as investors eyed a potential Russia-Ukraine peace deal that could ease sanctions disrupting global supply flows. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. Cargo surveyors estimated Malaysian palm oil exports to have fallen between 12.3% and 19.9% between February 1-15 from a month earlier.
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Source : Business Recorder
