Malaysian crude palm oil futures fell 1.0 percent on Monday amid lower crude oil prices and as traders awaited palm oil export numbers. Crude oil fell to below $51 a barrel, pressured by a stronger dollar and falling global equity markets. Dealers said traders were waiting for guidance from export data with Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance due to release March 1-30 palm oil shipment data on Tuesday.
Exports for the month as a whole are expected to fall in line with data announced for the first 25 days. Cargo surveyors have estimated that exports of Malaysian palm oil products for March 1-25 fell by up to 9.2 percent to 908,404 tonnes from 1,000,678 tonnes shipped in February 1-25.
"There is a tug-of-war between buyers and sellers. In the long run, I expect a defensive stance. Prices should remain on an upward bias," a dealer at a Kuala Lumpur-based brokerage said. The benchmark June contract on the Bursa Malaysia Derivatives Exchange declined 20 ringgit to 1,970 ringgit ($539.3) per tonne. The contract fell 2.2 percent on Friday. Other traded months dropped by between 27 and 60 ringgit. Overall volume was 9,078 lots of 25 tonnes each, compared to the usual 10,000 lots.
INDONESIA PALM TRADES In Indonesia, the worlds top producer of palm oil, the Jakarta-based state marketing centre sold 2,000 tonnes of palm oil out of 4,500 tonnes it offered at a top price of 7,207 rupiah ($0.622) per kg.On Friday, the centre did not sell 2,000 tonnes of palm oil it offered due to low bids. Producers in Medan - home to Belawan port, Indonesias main palm oil export port - did not hold a palm oil tender on Monday.
Meanwhile, refiners in Jakarta offered refined, bleached, deodorised (RBD) palm oil, used as cooking oil, at 7,600 rupiah per kg, down slightly from 7,700 rupiah per kg on Friday. In the Malaysian physical market, palm oil for March and April was traded at 2,090-2,120 ringgit per tonne in both southern and central regions.