Mumbai, 21 May (Commoditiescontrol): Malaysian palm oil futures closed higher at the midday break on Tuesday, tracking gains in Chicago Board of Trade (CBOT) soybean oil on Monday and extending last week's rally. Expectations of increased exports to China fueled the upward momentum.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 19 ringgit to 3,940 ringgit ($901.97) a metric ton.
Traders anticipate a surge in Malaysia's palm oil exports to China in May, further supporting prices. This is because China's demand for vegetable oils remains robust.
However, data from the Indonesian Palm Oil Association (GAPKI) revealed a 12% decline in Indonesia's palm oil export volume in the first three months of 2024 compared to the same period last year. Despite the expected rise in domestic consumption due to the B35 biodiesel mandate, the Indonesian Palm Oil Council (MPOC) cautioned that poor exports might lead to inventory buildup, potentially capping price increases.
Analysts suggest that potential profit-taking ahead of the public holiday for Wesak Day on Wednesday could temper the upward trend. Further continuation of this rally will highly depend on the ongoing rally in soybean oil.
(By Commoditiescontrol Bureau; +91-9820130172)
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