Mumbai, May 15(Commoditiescontrol): Malaysian palm oil futures experienced a notable increase during mid-day trading on Tuesday, driven by rising prices in competing soyoil markets and robust export demand.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange climbed 1.02% to 3,815 ringgit ($821.14) per metric ton.
This upward movement aligned with gains in soyoil prices on the Chicago Board of Trade, which rose 0.58%. While Dalian's soy oil contract saw a modest increase of 0.15%, its palm oil contract remained relatively flat.
Ahead of the monthly U.S. soy crushing data from the National Oilseed Processors Association (NOPA), analysts surveyed by Reuters anticipate the trade group to report a total crushing of 183.072 million bushels of soybeans in April. This figure represents a 6.8% decrease from the record-high March total but a 5.7% increase from the same period last year.
Malaysia's palm oil exports for the first half of May have experienced a significant decline compared to the same period in April, according to cargo surveyor Amspec Agri. The estimated exports for May 1-15 stand at 574,760 metric tons, marking a notable decrease from the 697,449 metric tons shipped during April 1-15. This figure includes the 362,790 metric tons exported in the first ten days of May, indicating a slower pace of shipments in the latter half of the period.
India's palm oil imports increased significantly in April as lower prices attracted buyers. Shrinking vegetable oil reserves in India and attractive prices compared to other oils are creating buying opportunities for forward months. Buyers from Pakistan, Egypt, the Middle East, and parts of Africa are also purchasing palm oil ahead of the Hajj festival in June.
Malaysian ringgit strengthened by 0.17%.
Despite a strengthening Malaysian ringgit, the short-term outlook for palm oil remains positive. Traders are advised to consider long positions at current levels, targeting a price of 3,930 ringgit with a stop loss at 3,830 ringgit.
Global Futures Palm oil and Soy Oil
(By Commoditiescontrol Bureau; +91-9820130172)
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