KUALA LUMPUR,(Reuters / B – Trams) :- Malaysian palm oil futures eased on Monday, weighed by a slump in crude prices after China announced a nine-day lockdown in Shanghai to carry out COVID-19 testing, although stronger prices of rival Dalian oils trimmed losses.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange fell 37 ringgit, or 0.61%, to 5,990 ringgit ($1,422.80) a tonne during early trade.
Key market China’s financial hub of Shanghai said on Sunday all firms and factories would suspend manufacturing or have people work remotely in a two-stage lockdown over nine days, after it reported a new daily record for asymptomatic infections.
Dalian’s most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 gained 2%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.9%.
Oil prices dropped about $4 as concerns over slower fuel demand in China grew, making palm a less attractive option for biodiesel feedstock. O/R
Exports of Malaysian palm oil products for Mar. 1-25 fell 5% to 1,030,943 tonnes from the same week in February, cargo surveyor Societe Generale de Surveillance said on Sunday.
The Malaysian Palm Oil Council (MPOC) forecast a small rise in 2022 global palm oil production, with Malaysia’s output seen at 18.9 million tonnes and Indonesia’s at 47.1 million tonnes.
The Malaysian Palm Oil Board (MPOB) revised upwards its outlook for 2022 crude palm oil price to an average.