VEGOILS - Palm slips in profit-taking and Thailand's export restriction caps fall
Malaysian palm futures fell a little on Monday as profit-taking pressured markets, but Thailand's crude oil export restrictions stopped the fall.
The benchmark palm oil contract for June delivery at the Bursa Malaysia Derivatives Exchange fell 27 ringgit or 0.56% to 4,812 Ringgit ($1,195.53) per metric ton.
Anilkumar bagani, head of commodity research at Sunvin Group in Mumbai, stated that some profit-taking occurred as the majority of bullish factors had already been priced into the market, leaving it without any new guidance.
Bagani stated that the market had recovered slightly from its early lows, as the news of Thailand's crude oil export restrictions began to spread.
Thailand's Commerce Ministry announced that it would tighten crude palm oils exports and control the prices of bottled palm oils starting April 7. Biodiesel is in high demand due to a rise in global fuel prices caused by Middle East conflict.
Oil prices dropped more than $2 during choppy trading as investors awaited clarification on the status and progress of the talks between the U.S.A. and Iran, and were wary of sustained supply disruptions due to shipping disruptions.
Palm oil is a more attractive feedstock for biodiesel due to the weaker crude oil futures.
Prices of soyoil on the Chicago Board of Trade rose by 0.07%. Dalian Commodity Exchange was closed on a public holiday.
As palm oil competes to gain a share in the global vegetable oil market, it tracks price changes of rival edible oils.
A survey showed that Malaysian palm oil inventories dropped by the most since three years in March, and are now at their lowest level since July last year. This is because a spike in exports has more than offset a modest increase in production. A survey revealed.
The palm ringgit's currency of trade strengthened by 0.07% to the dollar. This made the commodity slightly cheaper for buyers who hold foreign currencies. The ringgit is worth $4.250 per $1 (Reporting and editing by Clarence Fernandez, Ronojoy Mazumdar).
(source: Reuters)
