SINGAPORE: After falling for the previous seven trading days, Malaysian oil palm futures closed higher on Monday, but gains were capped by weaker rival soyoil.
On the Bursa Malaysia Derivatives Exchange, the benchmark palm oil contract for delivery in June increased by 65 ringgit, or 1.9%, to 3,577 ringgit ($809.46) per tonne.
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Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics, stated, “There was little momentum to sustain the prices.” Palm oil attempted to recover some of the massive losses from the previous week.
He stated, “Sentiments are still hamper by weakness in related vegetable oils.”
According to the Abdul Hameed, Director of sales at mazoor trading lahore,Pakistan , The Palm oil market trade in volatility this week, as recently banking turmoil and demand from asian countries like Pakistan, India, and China, which is buying for the Muslim holiday season, will support prices,”
According to Maybank Investment Banking Group, prices for crude palm oil are anticipate to fall prior to the mid-year seasonal output recovery.
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Cargo surveyors reported on Saturday that exports of Malaysian palm oil products rose between 11.4% and 19.8% from the previous month.
According to a statement released by the Indonesian palm oil association, Indonesia shipped 2.95 million tonnes of palm oil in January, an increase of 35.2% from the previous year.
In January, the world’s largest producer of crude palm oil produced 3.89 million tonnes, while inventories decreased by 3.56 percent to 3.09 million tonnes.
The most active soyoil contract in Dalian went up 1.2 percent, while the palm oil contract went up 2.0 percent. On the Chicago Board of Trade, the price of soy oil was down 0.1 percent.
As they compete for a share of the global market for vegetable oils, palm oil is affect by changes in the prices of relate oils.
Investors looked at government efforts to calm concerns about the global banking system, which led to an increase in oil prices on Monday. Meanwhile, Russian President Vladimir Putin’s plans to place tactical nuclear weapons in Belarus heightened tensions in Europe.