Palm oil rebounds on strong exports
Updates with midday prices, analyst comment, March 1-20 export data
JAKARTA, March 20 (Reuters) -Malaysian palm oil futures rebounded on Wednesday, as expectation of better exports and easing production growth in March supported prices.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange rose 66 ringgit or 1.57% to 4,267 ringgit ($900.78)per metric ton by midday break.
“Today crude palm oil futures were up on rumour of better export figures and the production increase for the first 20 days of March is lower than the increase in first 15 days,” a Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products for March 1-20 rose 7.4% compared to the same period last month, cargo surveyor Intertek Testing Services said on Wednesday, accelerating from the 3.3% increase estimated in the first half of March.
Other cargo surveyors are also expected to release March 1-20 exports data estimates.
Dalian’s palm oil contract DCPcv1 rose 1.45%, while its soyoil contract DBYcv1 was up 0.38%. Soyoil prices on the Chicago Board of Trade BOc2 were up 0.12%.
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 fall into a range of 4,158-4,170 ringgit per metric ton, as the uptrend from 3,916 ringgit or 3,811 ringgit has reversed, Reuters’ technical analyst Wang Tao said. TECH/C
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