JAKARTA: Malaysian palm oil futures opened higher on Tuesday, supported by strength of the palm oil contract in the Dalian Commodity Exchange.
Malaysian palm oil futures decline
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 11 ringgit or 0.28% to 3,919 ringgit ($845.71) by 0233 GMT.
Fundamentals
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Dalian’s most-active soyoil contract dropped 0.05%, while its palm oil contract was up 1.75%. Soyoil prices on the Chicago Board of Trade were up 0.4%.
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Palm oil tracks price movements of rival edible oils as they compete for a share of the global vegetable oils market.
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Indonesia’s Trade Ministry is planning to revise the domestic market obligation rules for palm oil to potentially change the prices for the portion and types of product sold to the local market.
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Indonesia’s palm oil exports in May were 1.97 million metric tons, an 11.8% drop from a year earlier, data from the country’s palm oil association GAPKI showed on Monday.
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Malaysian palm oil exports for July 1-25 are estimated to have risen from last month, with cargo surveyor Societe Generale de Surveillance estimating exports of 1,193,049 metric tons, compared with 908,517 tons during June 1-25, according to LSEG.
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Cargo surveyors Intertek Testing Services and Amspec Agri said exports rose 31% year-on-year.
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Palm oil may break support at 3,881 ringgit and fall to 3,849 ringgit, Reuters technical analyst Wang Tao said.
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