JAKARTA: Malaysian palm oil futures ended up on Wednesday as the commodity’s price was seen as competitive compared with rival oils, while the market awaited export and production performance data for the first half of the month.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 39 ringgit, or 1.02%, at 3,854 ringgit ($819.13) a metric ton on the closing.
“The market is considering the current palm oil prices competitive. Market focus is now on May 1-15 palm oil export and production performance,” Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group said. Dalian’s most-active soyoil contract rose 0.54%, while its palm oil contract gained 0.21%. Soyoil prices on the Chicago Board of Trade increased 0.58%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Exports of Malaysian palm oil products for May 1-15 fell 17.6% to 574,760 metric tons from 697,449 tons shipped during April 1-15, independent inspection company AmSpec Agri Malaysia said on Wednesday.
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for May 1-15 fell 5.2% to 600,777 metric tons from 633,680 metric tons shipped during the same period in April. Ahead of monthly US soy crushing data due on Wednesday from the National Oilseed Processors Association (NOPA), analysts surveyed by Reuters on average expect the trade group to report that its members crushed 183.072 million bushels of soybeans in April, down 6.8% from the record-high March total but up 5.7% from a year earlier.
India’s palm oil imports rose to their highest level in three months in April as lower prices lured buyers, a leading trade body said on Tuesday. Imports rose 40.9% in April from the previous month to 684,094 metric tons.
Oil prices rose on Wednesday on expectations for higher demand as the US dollar weakened and a report showed US crude and gasoline inventories fell while the release of inflation data may point to a more supportive economic outlook.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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