MUMBAI (Commoditiescontrol) - Malaysian palm oil futures recovered from near three-month lows to trade slightly higher on Tuesday on short covering due to weak ringgit.
Fundamentals signals for crude palm oil is mostly bearish due to prospects of production to rise in February month followed by expectations of robust soybean crop in Brazil and favorable weather in Argentina, raising hopes for some recovery in production after huge losses caused amid flood a month earlier.
The most active April delivery crude palm oil on the Bursa Malaysia Derivatives Exchange was tad up 3,039 ringgit ($683.54) per tonne at the midday break against previous close of 3,036 ringgit per tonne. Earlier in the session, they hit 3,011 ringgit, their lowest levels since Nov. 25, 2016.
Malaysia ringgit traded weak at 4.4495 against U.S dollar.
Palm oil shipments in the first 10 days of February slipped up to 3 percent from the corresponding period in January, showed cargo surveyor data, as demand for the tropical oil waned after the Lunar New Year celebrations.
Malaysia palm oil production seen higher by 18% during February 1-10 against same period last month. According to South Peninsula Palm Oil Millers Association. Yields have improved by nearly 20 percent as last year's dry weather due to El-Nino is subsidizing.
Last week, Malaysian palm oil board (MPOB) in its monthly report have forecasted palm oil production down 13.4 percent for full January month.
(By Commoditiescontrol Bureau; +91-22-40015533)