Malaysian palm oil futures rose after three sessions of losses in early trade on Tuesday, tracking a recovery in soyaoil on the US Chicago Board of Trade. Benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was last up 1.3% at 2,055 ringgit ($492.22) per tonne at noon. The market will be closed from Tuesday afternoon until Thursday for Eid holidays, and will reopen for a full trading session on Friday.
"The market is up tracking soyaoil, which gained on slow planting estimates from the US Department of Agriculture," said a Kuala Lumpur based trader. US soyaoil prices rose after the USDA reported that planting was well behind the average pace for this time of year. The Chicago July soyabean oil contract was last up 0.6% on Tuesday.
Wet weather had plagued US farmers last week, especially in the Eastern Corn Belt, as planting progress for corn and soyabeans likely failed to advance as much as needed given the already slow pace. The Crop Watch growers in Indiana and Ohio did not report that much progress had been made.
In related oils, the September soyaoil contract on the Dalian Commodity Exchange edged down 0.04% and the Dalian September palm oil contract fell 0.1%. Palm oil prices are affected by movements in soyaoil, with which it competes for global market share. A Reuters palm oil poll also showed that Malaysia's end-stocks in May are expected to fall 9.7% to 2.46 million tonnes, according to eight survey respondents. Meanwhile, output is forecast to fall 2% to 1.61 million tonnes, while exports are seen rising 3.3% to 1.71 million tonnes.
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