Malaysian palm oil futures edged up on Wednesday amid hopes stocks could have dropped in June, but gains were limited by concerns about rising output in the world's No 2 producer. Rising exports could ease stocks further from May's 1.82 million tonnes, the lowest in nearly a year, but some traders said increasing production could limit the fall.
"We need to see the production number, which could rise around 8-9 percent. Stocks could range around 1.75-1.78 million tonnes. The market is just mostly in a wait-and-see mode now," said a dealer with a foreign commodities brokerage in Kuala Lumpur. Industry regulator the Malaysian Palm Oil Board will release official stocks data next week. The benchmark September contract on the Bursa Malaysia Derivatives Exchange gained 1.1 percent to close at 2,365 ringgit ($743) per tonne on Wednesday, snapping five straight sessions of losses.
Total traded volumes stood at 36,758 lots of 25 tonnes each, higher than the average 35,000 lots. Prices moved in a 2,342 to 2,372 ringgit range. Technicals show palm oil may briefly touch or pierce below a support of 2,330 ringgit before rebounding towards 2,391 ringgit, Reuters market analyst Wang Tao said.
Malaysian palm oil shipments in June rose 5-7 percent from a month ago, as purchases spiked ahead of the Muslim holy month of Ramadan that starts next week, cargo surveyor data showed. In vegetable oil markets, US soyaoil for December edged up 0.6 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange fell 0.7 percent.