Palm exports to Thailand are being curtailed as a counter-profit-taking measure.

Malaysian palm 'oil futures traded at a tight range?Monday as Thailand's crude oil export restrictions offset the profit-taking pressure.

By midday, the benchmark palm oil contract for?delivery in June on?the Bursa Derivatives exchange had gained 4 ringgit or 0.08% to 4,843 Ringgit ($1,201.74) per metric ton.

Anilkumar bagani, the head of commodity research at Sunvin Group in Mumbai, explained that some profit-taking occurred as bullish factors had already been priced into the market, leaving it without new guidance.

Bagani stated that the market recovered slightly from its early lows when news spread of Thailand's crude oil export restrictions.

Thailand's Commerce Ministry announced that it would tighten crude palm oils exports and control the prices of bottled palm oil starting April 7. Biodiesel is in high demand due to a rise in global fuel prices caused by Middle East conflict.

Oil prices fluctuated little in choppy trading as investors waited for clarity on the progress of the talks between the U.S.A. and Iran, while also remaining cautious about the potential supply disruptions due to the shipping disruptions.

The palm oil price is more attractive as a feedstock for biodiesel due to the stronger crude oil futures.

The Chicago Board of Trade reported a 0.04% increase in soyoil. The Dalian Commodity Exchange was closed on a public holiday.

As palm oil competes to gain a share in the global vegetable oils industry, it tracks price movements of competing edible oils.

A survey revealed that Malaysian palm oil inventories dropped by the most since three years in March, to their lowest level since July last year, as an increase in exports outweighed a modest rise in production.

The palm ringgit (?MYR=), the currency of trade for the company, fell 0.05% in value against the dollar. This made the product slightly cheaper to buyers who hold foreign currencies.

(source: Reuters)