Mumbai, May 6 (CommoditiesControl)– Malaysian palm oil futures closed higher on Monday, tracking gains in competing soy oil prices, although concerns persist regarding exports from key producer Malaysia. Palm oil production in May has been weak due to holdays, analyst with the leading analytics firm said.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange climbed by 19 ringgit, or 0.49%, to reach 3,863 ringgit ($815.50) per metric ton at the day's close.
Dalian's most-active soy oil contract exhibited a 0.76% increase, while its palm oil counterpart saw a 0.24% gain. Similarly, soy oil prices on the Chicago Board of Trade rose by 0.93%.
According to the Sources, "Palm oil demonstrated narrow trading margins today, coinciding with the reopening of Chinese markets following Labour Day holidays."
Despite the support provided by a weaker ringgit against the dollar, the anticipated sharp decline in Malaysia's palm oil exports from May 1 to 5 is exerting downward pressure on palm prices.
Traders who initiated buy positions at 3840 levels could consider holding until the price reaches its target of 3925, while cautious traders may opt to book profits around 3880-3900 levels.
Global Futures of Palm oil and soyoil
(By Commoditiescontrol Bureau; +91-9820130172)
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