KUALA LUMPUR: Malaysian palm oil futures market, including early gains, a potential premium-turned-discount compared to rival oils, and recent export and production figures.
Industry participants told Reuters on Tuesday that palm oil’s rare premium over rival rapeseed oil and sunflower oil is likely to be short-lived and should turn into a discount once top producer Indonesia eases export restrictions following Ramadan.
On the Bursa Malaysia Derivatives Exchange, the benchmark palm oil contract for delivery in June gained 22 ringgit, or 0.6%, to 3,709 ringgit ($839.90) per tonne.
However, Abdul Hameed director of sales at manzoor trading Expecting that palm oil futures will be trade around 3700 ringgit level .
While rival edible oils looks like pressuring palm but palm fundamental is still decently good due to production is down and exports are surged up in March , Where the ending stock is going down toward the 2 mln level.
Exports from Malaysia during March 1-25 jumped between 11.4% and 19.8% from the same period in February, according to cargo surveyors’ data this week.
Indonesia production might be even to slightly up and export is still average With this, palm might be trading at 3600-3800 level at the moment.
Palm oil futuresclosed at its highest level in a week after rising for the third session in a row.
The most active soyoil contract in Dalian increased by 1.1%, while the palm oil contract increased by 1.2%. Soyoil costs on the Chicago Leading body of Exchange were down 0.04%.
As they compete for a share of the global market for vegetable oils, palm oil is affect by changes in the prices of related oils.
According to analysts, production in the world’s second-largest producer is expect to fall after a miller’s association predicted a 22.9% drop in output from March 1 to 25.
According to data from cargo surveyors this week, exports from Malaysia rose between 11.4% and 19.8% from February during the same time period.
Top maker Indonesia intends to set its rough palm oil reference cost for the April 1-15 period at $898.29 per ton, Musdhalifah Machmud, a senior authority at the Organizing Service of Financial Undertakings, said on Tuesday.