KUALA LUMPUR: Malaysian palm oil futures eased on Monday, pressured by falling exports amid higher March inventories as global lockdowns to stem the spread of the coronavirus curbed demand.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange slid 13 ringgit, or 0.56%, to 2,299 ringgit per tonne at 0236 GMT, after last week’s 3% jump.
Malaysia’s exports in April 1-10 fell between 6.6% and 12% from the month before, cargo surveyors said on Friday.
Malaysia’s March palm oil inventories were higher than expected, rising 1.67% from February as production also increased by 8.4%, official data showed on Friday.
Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand.
Dalian’s most-active soyoil contract gained 0.56%, while its palm oil contract fell 0.4%. Soyoil prices on the Chicago Board of Trade were trading up 0.29%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may retest a support at 2,253 ringgit per tonne, a break below which could cause a fall to 2,186 ringgit, Reuters technical analyst Wang Tao said. -Reuters
source https://www.thesundaily.my/business/palm-oil-dips-on-lower-exports-higher-inventories-AE2251727
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