Palm range bound ahead of MPOB and export estimates
The price of Malaysian palm oils futures was tightly ranged on Tuesday as traders awaited the cargo surveyors’ export estimates, and the Malaysia Palm Oil Board (MPOB) supply-demand data.
By midday, the benchmark contract for palm oil on Bursa Derivatives Exchange, August delivery, had fallen 19 ringgit (0.48%) to $3906 ringgit per metric ton ($922.75). The contract traded between 3,900 and 3,947 per ton.
A Kuala Lumpur trader stated that the market remained rangebound, with some profit-taking ahead of MPOB results.
The Malaysian Palm Oil Board's (MPOB) data showed that Malaysian palm oil stocks rose to 1,99 million tons at the end May, a third consecutive increase despite booming exports.
Dalian's palm oil contract, which is the most active contract, lost 0.17% while soyoil prices rose by 0.13%. Chicago Board of Trade soyoil prices were up by 0.8%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
Later in the afternoon, cargo surveyors will release estimates of Malaysian palm oil imports for May 1-10.
As market participants awaited the outcome of U.S. China talks, which could ease trade tensions and increase fuel demand, oil prices increased.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency, the dollar, has weakened by 0.09%, making it slightly cheaper for foreign buyers.
Technical analyst Wang Tao stated that palm oil is neutral within a range widened from 3,889 to 3,961 Ringgit per metric tonne. An escape could indicate a direction.
(source: Reuters)
